Do You Need a Stated Income Commercial Real Estate Loan?

Is your credit history keeping you from qualifying for traditional loans? You don’t have to forego your business dreams. A stated income commercial real estate loan is beneficial for a number of reasons:

  • Consolidate debt
  • Improve Property
  • Refinance
  • Purchase property
  • Build working capital

Basics of the Loan

A stated income commercial real estate loan is ideal for your business if you have a credit score of at least 600, need a large loan of up to $500,000 and have documentation of income in the form of W-2s or 1099s. These loans are available for nearly all types of property and offer fixed rates and 25-year amortization. Offices, auto service companies, retail stores, self-storage facilities and warehouse property receive up to 65 percent loan to value while non-owner occupied investment properties receive up to 70 percent and multifamily properties receive up to 75 percent. If you are approved for the loan, you can use the money almost any way you see fit for your business or property investments.

Stated Income vs. Traditional Loans

Traditional loans typically require the borrower to have a very high credit score, which makes it difficult for many people to be approved. While stated income loans do factor in credit scores, they typically require lower ones and do not put extreme emphasis on the scores. Stated income loans are also approved more quickly and do not require as much documentation for approval. They are ideal for people who need funding fast, but are only approved if the property used is valuable enough to cover its mortgages, taxes and insurance.

How to Find Out More

Are you ready to learn more about state income commercial real estate loans and whether you can benefit from them? Contact a financial advisor from First Envision Commercial Capital Partners to learn more and see if you qualify. We look forward to answering your questions.