Build Your Business with a Stated Income Commercial Real Estate Loan
If your credit has hit some snags and you haven’t been able to secure traditional loans at credit unions and banks, then you may want to consider a stated income commercial real estate loan. These loans are ideal for those businesses looking for a simple, straightforward way to do one or all of the following:
- Consolidate debt
- Improve property
- Build working capital
- Purchase Property
Here at Providence Business Capital, we can walk you through a stated income loan and help you avoid the piles of paperwork that generally come with a traditional loan.
The Basics of Stated Income Loans
Some of the best candidates for stated income loans are businesses that deal in warehouses, apartments, restaurants and real estate. That being said, any type of business may be able to qualify as long as the property being used meets the requirements.
Here are some of the general basics of these types of loans:
- Nearly any type of property is welcome
- Must have a qualifying credit score of at least 600
- Need to provide self-employment or W-2 documentation
- Can apply for loans as high as $500,000
- Fixed rates, 25-year amortized
- Up to 65% LTV for auto service, self-storage, warehouse, retail and office properties
- Up to 70% LTV for mixed use and multi-family properties
- Up to 70% LTV for non-owner occupied investment properties
How do Traditional and Stated Income Loans Differ?
A traditional loan puts a lot of weight on the credit history of the borrower, where a stated income commercial real estate loan focuses more on the real estate involved. If the property holds enough value to cover the insurance, taxes and mortgage of the loan, then you likely can be approved. Stated income loans also have a much quicker approval rate than that of traditional because there is less documentation.
Get in Touch
If your business needs a loan, then contact us at the Providence Business Capital today. A stated income commercial real estate loan may be just the thing to get your business up and rolling.