Why Stated Income Commercial Real Estate Loans May be Right For You
Not many businesses have cash on hand to purchase commercial properties, so loans are necessary. However, those loans can be difficult to obtain, particularly with certain types of credit history. A stated income commercial real estate loan from Innovation Commercial Capital will not only help you purchase business property, but it can also be used for improving existing properties, building working capital, refinancing and consolidating debt.
Stated Income Loans vs. Traditional Loans
Traditional loans are granted based on the borrower’s credit history; whereas, stated income loans are granted based on real estate value. The property’s value must cover the insurance, mortgage and taxes of the stated income loan. Less documentation is required for qualification and stated income loans are usually approved more quickly than traditional loans. The following are basic components of stated income loans:
- A qualifying credit score of 600
- Fixed rate, 25-year amortized loans
- Most property types welcome
- Self-Employment or W-2 documentation
- Up to 65% loan-to-value for office, retail, warehouse, self-storage and auto service properties
- Up to 70% LTV ratio for 1 to 4-unit, non-owner-occupied investment properties
- Up to 75% LTV for multifamily and mixed-use properties (5 or more units) and minimum 700 credit score
For more information on a stated income loan, call us today at 888-904-9411.