Get the Funding You Need with a Stated Income Commercial Real Estate Loan
Do you need funding for a time-sensitive commercial real estate project? Would you rather skip the complicated and long road to approval required by traditional lending channels? Purevue Capital offers stated income commercial real estate loans that carry these advantages and more, such as the ability to work with a variety of credit histories, which may make these loans ideal for your next project.
What Is a Stated Income Commercial Real Estate Loan?
Instead of factoring in the borrower’s credit history and other personal records as with a traditional loan, this loan uses a real estate property to service the loan. No matter the type of commercial real estate you need to finance —apartments, warehouses, restaurants, or something else —you may be approved for a stated income loan if there is a qualifying property.
What Are the Qualifying Parameters?
Any property may be used as long as its value exceeds the loan and can cover the insurance, taxes, and mortgage. A minimum credit score of 600 is required, along with relevant self-employment documents and W-2s. Here are some things to bear in mind regarding loan-to-value (LTV) limits:
- A maximum 65% LTV is allowed for retail, office, warehouse, self-storage and auto service properties.
- Up to 70% LTV for investment properties with one to four units, which are not inhabited by owners.
- For mixed-use and multifamily properties with five units or higher, the LTV cannot exceed 75%, and a 700 or higher credit score is needed.
What Are the Benefits?
If you have adverse items on your credit file or are facing other hurdles for a traditional loan, stated income loans can provide a viable alternative. With values as high as $500,000, these loans offer fixed rates with 25-year amortization. Use the funds to refinance, improve or purchase property, or to consolidate debt.
Do you have any questions regarding a stated income commercial real estate loan? Contact Purevue Capital today to discuss and receive fast approval for your next loan.