Stated Income Solutions for Commercial Real Estate
Businesses require capital for day-to-day operations and to grow. If your credit history prevents you from getting a traditional loan, or if you prefer flexible funding, a stated income commercial real estate loan may fit your needs. These loans provide working capital and can help businesses:
- Consolidate debt
- Refinance mortgages
- Purchase or improve property
These loans may also be used to finance different types of properties from restaurants and office buildings to retail and warehouse space.
Traditional vs. Stated Income Loans
Traditional loans require significant documentation, from credit reports to tax returns. Approval is based on the business owners credit. They can be used to finance a variety of owner-occupied and non-owner, occupied properties, to consolidate debt and for property improvements.
In contrast, stated income loans focus on the value of the property, rather than the borrower’s credit history. The verified property value must cover the mortgage amount, insurance and taxes on the loan. Additionally, the property in question cannot be owner-occupied.
Loan Qualification Guidelines
Less paperwork means approval for stated income commercial real estate financing is must faster than traditional loans. Although credit history doesn’t weigh as much as in other loans, a qualifying credit score of at least 600 is necessary. Employment must be verified through W-2’s or self-employment documentation. Benefits include:
- Almost any property type is accepted
- Flexible, multi-use funding
- Loan amounts to $500,000
- 25-year amortized loans, with fixed rates
The loan-to-value ratio varies, based on the type of property:
- Up to 65% for auto service, office, retail, warehouse and self-storage properties
- Up to 70% for one to four-unit investment properties (non-owner occupied)
- Up to 75% for properties with five units or more, such as multifamily and mixed-use
Contact Us Today
Proactive Funding Solutions offers financing programs that can help you improve your properties and grow your business. Closing can take as little as two to three weeks. Contact us to find out if a stated income commercial real estate loan is right for your organization.