Use Stated Income Loans To Fund Commercial Real Estate Investments

Your credit history follows you around like a shadow. Though you may actively work toward improving your score, it can take years before you qualify for certain loans. When you feel your options for financing are limited, it can prevent you from taking advantage of real estate investment opportunities for your business. Though it may seem like a tough endeavor, you can find an interesting solution by exploring stated income commercial real estate loans.

How Stated Income Differs From Traditional Loans

Right away, you may wonder how stated income loans are different than traditional financing options. Instead of focusing solely on a borrower’s personal credit history, the lender is merely looking to ensure the property is valued high enough to cover the overall costs of the stated income loan. When this is verified, the lender asks the borrower for his or her income.

The main difference here is in the way the lender receives a borrower’s income information. Traditionally, a borrower must verify income via documentation like a W-2 form. With stated income loans, the lender takes this information at face value and does not require any documented proof. This process helps borrowers with qualifying properties see approval in a much faster manner than is customary for traditional financing options.

Advantages of Stated Income Loans

There are a number of key advantages you can expect by considering stated income financing options for your company’s real estate investments.

  • As long as the property has qualifying value, the loan is likely to be approved.
  • A wide range of properties are eligible for this financing option, including multi-family homes, warehouses, and restaurants.
  • Qualifying borrowers can take out as much as $500,000 on eligible properties.
  • LTV ranges from 65 – 75% depending on the type of property being purchased.

Your Options

If the information provided here seems appealing to you, then a stated income commercial real estate loan may be the most sensible fit. Contact us at Athens Alternative Lending Solutions at your earliest convenience and learn more about what financing options await you.