The Benefits of Stated Income Commercial Real Estate Loans
Securing the right financial product for your business sometimes means thinking outside the box. Traditional loans present many favorable options, but they are not the best choice for all potential borrowers. Some may have damaged credit, making it more difficult to qualify for a loan. Others may simply wish to avoid the piles of paperwork required in traditional loan applications. Stated income commercial real estate loans benefit many people in these situations.
What is a Stated Income Loan?
These loans are based on the value of a piece of property you already own. As long as the value covers insurance, taxes, and the mortgage, you may qualify for funding. Since the value of the property weighs more heavily in the decision than your personal credit, you may be approved despite past financial difficulties.
Funds from stated income loans can be used much like monies from traditional loans. Consolidate debt, improve existing properties, or create a source of working capital for your business.
Terms and Benefits
Consider the following requirements and benefits when deciding whether this type of loan is right for you:
- Less paperwork than traditional loans
- Up to $500,000 in financing
- 25-year repayment terms
- Minimum credit score of 600
- Up to 65% loan-to-value (LTV) on self-storage, office, warehouse, retail and auto service properties
- Up to 70% LTV on investment properties with one to four units that are not owner occupied
- Up to 75% LTV on multifamily properties (five or more units) with a credit score of 700 or better
These are amortized loans with fixed interest rates. Applicants must submit self-employment documents or W-2 forms for consideration.
Call Titan Funding Solutions for more details about our stated income commercial real estate loans. We process applications quickly, meaning you could close on the loan in as little as two to three weeks. Receive a free, no-obligation consultation to determine if this is the right loan for you.