Stated Income Commercial Real Estate
Is a Stated Income Commercial Real Estate Loan Right for Your Business?
When traditional loans are no longer an option or if you’re tired of wading through the mountains of paperwork involved in loan approval processing, you may want to consider a stated income commercial real estate loan. While a traditional loan focuses on the borrower’s credit history, a stated income loan focuses on property value. The real estate value must be enough to cover the insurance, mortgage and taxes of the loan.
Advantages of a Stated Income Commercial Real Estate Loan
This type of loan is especially helpful to businesses turned down for other types of loans because of credit issues. Stated income loans need less documentation and receive faster approval than traditional loans. Businesses can use stated income commercial real estate loans for the same purposes as tradition loans such as buying property, building working capital, consolidating debt, refinancing and property improvements.
Whether your business is apartments, restaurants, warehouse or anything else, if your property meets the requirements, you can qualify for a stated income loan.
Deciding if a Stated Commercial Income Real Estate Loan is Right for You
Use these general loan basics to see if a stated income loan is a good choice for your business.
- 25-year amortized loans with fixed rates
- Documentation of self-employment or W-2 form
- Use funds for various purposes like refinancing and debt consolidation
- Qualifying credit score of 600
- Loan amounts as large as $500,000
- Loan-to-value ratio of up to 65 percent for retail, office, auto service, warehouse and self-storage properties
- LTV ratio of up to 70 percent for 1 to 4-unit, non-owner-occupied investment properties
- LTV ratio of up to 75 percent and a credit score of 700 or better for multifamily and mixed-use properties with five or more units
- Nearly any property type welcome
If you feel a stated income commercial property loan is right for you, contact us today for more information.