Stated Income Real Estate Loans Available for Borrowers With Less Than Perfect Credit

What Is a Stated Income Commercial Real Estate Loan?

If your credit is not as great as you would like or you just don’t want to provide a lot of documentation of income for a loan, a stated income commercial real estate loan may be just what you need. With this type of loan, the value of the property is more important than the borrower’s credit.

Stated Income Real Estate Loan Key Points

A stated income loan may work for you if your credit is fairly poor. The lender will be more interested in the value of the property than in your personal credit. If the real estate which secures the loan is valuable, you will be able to borrow a portion of the value of the property. This is called the loan-to-value ratio (LTV). For example, if you borrow 65% of the value of your property, the LTV is 65%.

Even if your credit is good, if you are self-employed, banks will require a lot of documentation to prove your income. If you don’t want to be bothered with hunting down the documentation that is needed, a stated income commercial real estate loan will be a lot easier for you to obtain.

Stated Income Loans have the following properties:

• Not as much documentation is needed to apply
• A lower credit rating is okay
• The value of the property must cover the amount of the loan
• Quick approval compared to a traditional loan
• Types of properties that qualify include investment property, restaurants, businesses and warehouses
• Money can be used to purchase or refinance property or to consolidate debts
• Self-employment is okay

Details of Stated Income Loans

• Fixed rates
• Term of 25 years
• Financing for up to $500,000
• Credit score must be above 600
• Up to 65% LTV for most businesses
• Up to 70% LTV for 1-4 unit investment properties
• Up to 75% LTV for mixed-use and multifamily properties
• Credit score over 700 for multifamily or mixed-use properties

Call Us Now

Call us at Rustwood Capital today. Our loan specialists will be happy to discuss stated income loans with you.