How a Stated Income Commercial Real Estate Loan Works

Typical loans can come with a fair amount of paperwork and financial requirements. The beauty of a stated commercial real estate income loan is that the primary factor for approving a loan is based on the property in question and not on the credit history of the borrower. This results in several positive factors for the company needing capital.

At First Crescent Capital, we recommend this type of loan for those who wish for a quick approval process without the need for an abundance of paperwork. So long as the piece of property will cover the mortgage, taxes and insurance of the loan, the process moves quickly.

The Basics of the Loan

Once you understand the basics of a stated income loan it is easier to decide if this is the right loan for your company. Applicants will need to meet the following criteria to qualify:

  • Must have a credit score of 600 to qualify
  • Must provide W-2 or self-employment documentation
  • The property must have a 65% LTV for auto service, retail and warehouse
  • The property must have a 70% LTV for non-owner occupied units
  • The property must have a 75% LTV for multi-family units

Loan amounts go as high as $500,000 and come with fixed rates and payout terms up to 25 years. Nearly any type of property is considered.

The Benefits of a Stated Income Loan

In addition to quick approval and minimum amount of paperwork, this lending type has many advantages. It is suitable for debt consolidation, real estate purchases, refinancing, building working capital and improvements. It is often used by business owners in the areas of restaurants, warehouses, apartments and real estate ventures.

Contact Our Finance Team

To learn more about a stated commercial real estate income loan contact us at First Crescent Capital. Our financial professionals will go over the details of the program for you