Stated Income Commercial Real Estate Loans
Obtaining a loan can be difficult with a less-than-stellar credit history. The approval process can be complex and lengthy with tons of paperwork involved. There is another option that may suit your needs. At Hudson and Hudson Lending we offer stated income commercial real estate loans which can be used for purchasing or improving the property, consolidating debt, refinancing, or building working capital.
Stated Income vs. Traditional Loans
Stated income loans differ from the traditional type in that they do not focus on the credit history of the lender. Rather, the loan is offered based on the value of the piece of commercial property owned by the lender. The loan can be approved provided the value of the property is enough to cover the mortgage, taxes, and insurance of the loan. These loans require far less documentation than a traditional loan and can thus be approved more quickly.
Basics of a Stated Income Loan
To help you determine if a state-income commercial income real estate loan is right for you, here are the basics of this type of financing:
- A credit score of 600 to qualify
- Nearly any type of commercial property
- W-2 or documentation of self-employment
- Loans of up to $500,000
- 25-year amortized loans with fixed rates
- Loans for a variety of purposes such as debt consolidation, refinancing, and purchasing
- Loan-to-value rates of up to 65% for auto service, warehouse, retail, and self-storage properties
- LTVs of up to 70% for 1-4 unit investment properties and up to 75% of properties of 5+ units
If these basics suit your needs, you may benefit from a stated income loan.
Contact Hudson and Hudson Lending if you feel that a stated income loan is right for your business’s financial needs. We’ll discuss the details of the loan and you could be approved and have financing in as little as 2-3 weeks.