Why a Stated Income Commercial Real Estate Loan May Be Right for You

As the commercial real estate market has begun to improve recently, so have the opportunities to obtain a commercial real estate loan. If, due to your credit history or financial standing, you may not qualify for a traditional bank loan, consider instead a stated income commercial real estate loan from Arouet Capital.

Concept

The concept of a stated income loan is simple: the value of the subject property (as expressed by the income you have stated it will produce) must be able to cover the expenses of the property. These expenses include any mortgage payments, insurance, taxes and maintenance.

Benefits 

As a potential borrower, you can take advantage of some of the many benefits of a stated income loan:

  • Less documentation: When applying for a stated income loan, you are not required to submit either your personal or your business tax returns. Self-employment documentation or W-2 documentation are generally required, as well as a credit score of 600 or above.
  • Faster approval and closing: Because less documentation is required, the loan can be processed, approved and closed quickly.
  • Fewer restrictions: Unlike a traditional loan, a stated income loan may be obtained for any commercial use, such as office, warehouse, multi-family, restaurant or retail. In addition, you may use the proceeds of the loan not only to purchase a property, but to refinance or consolidate debt, or to improve the property.
  • Large loan amount: With a commercial real estate loan, you can borrow up to $500,000 (65% – 75% LTV) based on the type of property you are working with.
  • Fixed rates: You can get a fixed-rate loan amortized up to 25 years.

Next steps

For specific requirements and to learn if you qualify for a stated income commercial real estate loan, contact us to set up an appointment to discuss your options today. At Arouet Capital, we can help you realize your dreams.