Should Your Business Get a Stated Income Commercial Real Estate Loan?

If your credit history is less than perfect or you just don’t feel like going through the long, tedious process that comes with getting a traditional loan, you might consider getting a stated income commercial real estate loan. First Touch Consulting provides these types of loans to qualified businesses when needed for purchasing property, improving property, refinancing, and building working capital.

Stated Income Versus Traditional Loans

The biggest difference between stated income and traditional real estate loans is that stated income loans do not focus on the credit history of the borrower. Instead, these loans focus on the value of the real estate. In order to get a stated income loan, the property in question must cover the entire amount of the mortgage as well as the taxes and insurance.

Another difference is that a stated income loan is approved much more quickly. Because there is less documentation required, the loan is able to be processed in a very timely manner. As long as your property meets the requirements, a stated income loan can be a faster way to get approved.

Stated Income Loan Requirements

To decide if your business and property are eligible for a stated income commercial real estate loan, review these requirements and loan terms:

  • W-2 or self-employment documentation accepted
  • Credit score of 600 or above
  • Fixed-rate loans with 25-year amortization
  • Loan amounts of up to $500,000
  • Funds can be used for refinancing, purchasing, debt consolidating, and more
  • LTV of up to 65% for auto service, office, retail, warehouse, and self-storage properties
  • LTV of up to 70% for investment properties with 1 to 4 units (non-owner occupied)
  • LTV of up to 75% for mixed-use and multifamily properties with 5 or more units (with a credit score of 700)

Contact us today to learn more about getting a stated income commercial real estate loan. Our financial specialists are waiting for your call.