Not all borrowers will be qualified for traditional commercial loans from banks. But not all hope is lost.
This doesn’t mean that they cannot get the financing they need at all.
If you find yourself being turned down by traditional lenders, you can consider stated income commercial loans that don't require you to declare your income.
A stated income loan was designed to simplify the application process for buyers with incomes that are difficult to document.
Self-employed individuals and those whose incomes are dependent mostly on tips are examples of buyers in this situation.
It is a loan that is under the Alt-A category of products. Sometimes, it is called liar loans or NINA (no income-no asset) loans.
But is this type of loan ideal for your next property investment?
It may be tempting to apply immediately as some lenders are promoting stated income commercial real estate loans as appealing alternatives to conventional mortgages.
You can certainly take advantage of them—but only if you know what you’re doing.
It’s important to make sure if this type of loan is suitable for your property investment project.
Before proceeding to get a stated income commercial loan, you need to identify what kind of real estate investor, you are:
Banks may differ with their terms depending on what property you are investing in.
Some financial institutions offer stated income commercial loans only for owner-occupied properties. Still, they may also review the borrower’s earnings from rentals or property flipping to see if they are qualified for financial credit.
If you have good credit, stated income commercial real estate loans could help you obtain financing despite being denied mortgages based on underwriting. Examples of such borrowers are immigrants who pool money together with their relatives to buy a home.
A stated income loan may be used to refinance or purchase commercial property. It is more concerned with a piece of real estate instead of your credit history.
However, the property's income value must be able to service the taxes, insurance, and mortgage for the loan to be approved.
One of the advantages of this type of loan over conventional commercial financing is the speedier approval process because fewer documents are involved.
Stated income commercial loans might also make sense if you need cash for your business, if you don’t have proof of income from the last two years, or earn a high commission despite having a low salary.
This type of loan may also make sense if you are applying for a cash-out refinance.
Some lenders might provide a stated income loan for debt consolidation, property improvements, or working capital.
Loan arrangements will vary per investment type, but you can learn more about them by consulting with the lenders.
Some companies may provide stated income loans for commercial real estate for properties under the asset classes of multifamily, commercial, office, retail, and mixed-use properties.
Occupancy is not required, and the loan size can range from $150,000 to over $5M. Amortization is fixed, ARM, or interest-only.
You need to prepare specific documents and fulfill certain requirements before applying for stated income commercial real estate loans:
You also need to disclose the following information:
Capital Investors Direct is based in Rockville, Maryland, capable of providing CRE investment advice nationwide.
We provide custom commercial loan solutions, including stated income commercial loans to discerning commercial real estate investors who may not acquire financing through conventional banks.
So far, we were able to help investors obtain the investment capital they need to finance retail and mixed-use properties, apartment complexes, and office spaces.
Apply for stated income commercial real estate loans through Capital Investors Direct.
You do not have to provide us with any income proof, and we’ll make the pre-qualified stated income loan process hassle-free and quick.
We promise flexible and reliable terms, fast approval without any hidden fees, and with fewer documents.
Capital Investors Direct provides loan financing in all 50 states and US territories (US Virgin Islands and Puerto Rico) and top 200 MSA Tier I and Tier II Cities with populations over 50,000, metropolitan areas, and much more.
We are proud to be chosen by our happy clientele for our ability to listen to their needs, apply a simple theory, and do our best and more to deliver.
Together, we provide our years of market knowledge, expertise, and detailed insights to help you go over your commercial real estate investment options and apply for the right loan that suits your needs.
Our approach sets us apart from other stated income commercial loans providers, as we make it investment-specific and customized to your unique investment objectives and goals.
Our team is equipped with the latest finance technology to provide a good selection of investment solutions to your finance requirements.
Rest assured, you are working with qualified CRE placement professionals who understand and evaluate your requirements and circumstances before structuring the right loan that is best for your project.
After getting the financing that you need, we’ll continue to work with you by following up on your project's progress and providing further assistance where needed.
That means by choosing Capital Investors Direct; you have a reliable partner who will walk with you through your investment journey.
To apply for a stated income loan through us, simply fill out the form on our website and wait for us to get back to you within 24 hours.
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