Reasons to Consider a Stated Income Commercial Real Estate Loan
Commercial property owners may need to take out a loan for any number of reasons. Maybe their current properties need some updating, or they need additional properties to expand their businesses. They might want to refinance an existing loan or consolidate multiple debts. In some cases, they may just need to working capital to get by. Traditional loan applications take time to process and may pose a challenge for borrowers with damaged credit. A stated income commercial real estate loan provides an exciting alternative for these borrowers.
What Is a Stated Income Commercial Real Estate Loan?
These real estate loans allow borrowers to leverage the value of a commercial property they already own. The value of the property must cover the mortgage, insurance, and taxes for the loan to be approved. This type of financing requires much less paperwork than traditional real estate loans, making them accessible to more borrowers.
Loan Terms and Details
Potential applicants should consider the following benefits and requirements when deciding if a stated income commercial real estate loan is right for them.
- Loan amounts up to $500,000
- Minimum credit score of 600
- Loan-to-value (LTV) up to 65% for retail, office, self-storage, auto service, and warehouse properties
- Up to 70% LTV for one-to-four unit investment properties that are not owner occupied
- Self-employment documentation or W-2 forms required
- Amortized loans with 25-year terms
- Reasonable, fixed interest rates
- Works with many property types
A borrower with a credit score of 700 or better may be eligible for even better terms. Owners of multifamily and mixed-use properties with more than five units may qualify for up to 75% LTV with a higher credit rating.
Contact Us
Call Golden State Capital to get more information about our stated income commercial real estate loans. Our streamlined application and approval process means you may be closing on the loan in less than three weeks.