When Is a Stated Income Loan Right for Your Business?
Proper funding is essential for growing a company successfully but traditional financial solutions are not right for every business. Those with imperfect credit histories often have a difficult time obtaining a traditional loan and in this case, a stated income commercial real estate loan could be a smart alternative. Lassen Financial Services offers this type of financing and allows you to use the money you receive in any way to benefit your business.
Benefits of Stated Income Loans
Stated income loans are designed to help businesses grow in a variety of ways. You stand to receive a loan amount of up to $500,000 and can use the money you receive in any way you deem fit. A qualifying credit score of 600 or more provides you with the following advantages.
- W-2 and self-employment documentation
- Fixed rates
- 65% LTV for commercial properties
- 70% LTV for investment and owner-occupied properties
- 75% LTV for multi-family and mixed-use properties
- 25-year terms
Differences Between Traditional and Stated Income Loans
Traditional and stated income loans are similar in many ways, but they are different in two distinct aspects. Stated income loans require less documentation so they are typically approved much more quickly than traditional forms of financing. The approval process is also different for the two forms of financing. Traditional loans are approved based upon credit history, while approval for stated income loans is determined based upon the value of the company property. If a company has a poor or limited credit history but owns property with a value that exceeds the cost of its mortgage, insurance and taxes, it qualified for a stated income loan. Any type of property that meets this criterion is eligible for this type of financing.
A stated income commercial real estate loan is a smart avenue of financing for many companies. Contact Lassen Financial Services today to learn more about this financial solution and determine if it is right for you.