Submitted by Naomi M on Thu, 05/29/2008 - 02:16.
No Tax Returns Required
No Bank Statements
Low Credit Scores - OK
Stated Income Commercial Loans
No Tax Returns Required
No Bank Statements
Low Credit Scores - OK
Most Popular Programs for Business Owners and Investors
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Program A
Stated Income for Owner User Only
$250,000 to $500,000
No Tax Returns Required Just Your Good Credit Purchase, Refi, Cash out, Line of Credit Up to 75% LTV for retail, mixed-use, office, warehouse, light industrial, shopping center, single tenant, office and warehouse condos Up to 50% LTV for restaurant, car wash, auto repair, auto body, car lot, day care, assisted living facility, self-storage and convenience store Other terms:  Must occupy 51% or more No Debt Service Coverage Ratio required Lien position can be 1st or 2nd 680+ credit score needed for most properties. |
Program B
Stated Income for Owner User and Investor
$250,000 to $6-Million and up
Purchase, Refi, Cash out Option 1: Stated express program – No verification of income or assets, only a review of the business tax returns to verify sufficient cash flow to service the debt. Option 2: Stated/Stated program – No docs required except for an MAI appraisal. Option 3: Owner-occupied stated program – No tax returns or financial statement, only a review of the debt service coverage ratio of the appraisal. Up to 80% LTV depending on property type. 600+ credit score needed for most properties. Wide range of property types eligible.
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| Other
Stated Income Loan Programs Available Other programs are available to match your scenario including Hard Money Programs that get your funds fast for short term financing. Loans based on equity of the property, typically up to 65% LTV. Minimum loan amount $500,000. Some exceptions to $400,000. Complete a Quick Qualifier loan request to see how we can help you. |
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Who is the ideal borrower for stated income/assets loans?
Small business owners and self-employed individuals who:
1. Operate their business in a building they own
2. Have a cash-based business
Stated income commercial loans are ideal for owners of a small business and or a cash-based business because the owner may have a small salary but the economic value of the business can easily exceed $100,000. But stating this to a banker can cause tax issues.
Unfortunately, banks are not always the ideal source for a loan for a small business owner because banks need plenty of hard assets to collateralize their loans and they are subject to scrutiny by federal regulators on their underwriting policies and practices. Therefore, a bank’s underwriting standards are often difficult for small, cash driven businesses to meet.
Thus, non bank lenders and stated income/asset commercial loans are a great alternative for cash businesses, “mom and pop” shops, self employed individuals, and businesses with environmentally sensitive properties such as auto repair shops and dry cleaners.
Why can non-bank lenders offer stated income/assets loans?
First, they operate in an under-served market: small businesses seeking small balance loans that traditional banks do not cater to. Also, non-bank lenders are not regulated so they can adapt policies, while they may make good sense, they would be outside of the federal regulators guidelines. Finally, non bank lenders believe in the value of the real property as collateral. By lending against the value of the real estate, non bank lenders need go no further in assuring the safety of their capital.
The role of your commercial property
Since the value of your commercial real estate will be the collateral for the loan, you will need to provide a Loan Package and Underwriting Analysis report to the lender. This is your first critical step in obtaining your stated income loan. Please read the information on these Commercial Loan Services offered.
General Guidelines
Property types eligible: All traditional property types such as office buildings, apartments, retail, strip center, warehouses, auto repair, mixed use, industrial and most special use property.
Can loan on investment and owner-occupied property
Minimum loan amount is $500,000, with some exceptions for lower loan amounts down to $250,000.
To get started on obtaining your stated income/asset loan, review the Commercial Loan Services section.
Small business owners and self-employed individuals who:
1. Operate their business in a building they own
2. Have a cash-based business
Stated income commercial loans are ideal for owners of a small business and or a cash-based business because the owner may have a small salary but the economic value of the business can easily exceed $100,000. But stating this to a banker can cause tax issues.
Unfortunately, banks are not always the ideal source for a loan for a small business owner because banks need plenty of hard assets to collateralize their loans and they are subject to scrutiny by federal regulators on their underwriting policies and practices. Therefore, a bank’s underwriting standards are often difficult for small, cash driven businesses to meet.
Thus, non bank lenders and stated income/asset commercial loans are a great alternative for cash businesses, “mom and pop” shops, self employed individuals, and businesses with environmentally sensitive properties such as auto repair shops and dry cleaners.
Why can non-bank lenders offer stated income/assets loans?
First, they operate in an under-served market: small businesses seeking small balance loans that traditional banks do not cater to. Also, non-bank lenders are not regulated so they can adapt policies, while they may make good sense, they would be outside of the federal regulators guidelines. Finally, non bank lenders believe in the value of the real property as collateral. By lending against the value of the real estate, non bank lenders need go no further in assuring the safety of their capital.
The role of your commercial property
Since the value of your commercial real estate will be the collateral for the loan, you will need to provide a Loan Package and Underwriting Analysis report to the lender. This is your first critical step in obtaining your stated income loan. Please read the information on these Commercial Loan Services offered.
General Guidelines
Property types eligible: All traditional property types such as office buildings, apartments, retail, strip center, warehouses, auto repair, mixed use, industrial and most special use property.
Can loan on investment and owner-occupied property
Minimum loan amount is $500,000, with some exceptions for lower loan amounts down to $250,000.
To get started on obtaining your stated income/asset loan, review the Commercial Loan Services section.
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