Stated Income Commercial Real Estate Loans Provide Options

If you have any level of experience on the commercial real estate market, then you already know how important it can be for your financing packages to reflect the needs of your business at the time of your purchase. That means the repayment structures should be built to work not only with your core business, but also with the reasons you have for purchasing the property you are financing. Outside The Box Funding has a number of options available to help with those purchases under a variety of circumstances, but one of the most unique options is the stated income commercial real estate loan.

How Stated Income Loans Work

When you take out a stated income loan, the value of the loan is not determined by the value of the property if resold on the market the way that it is for most other forms of real estate financing. Instead, it is based on the building’s income, the way you might expect a more general business loan to be. That allows the funds to be used in more versatile ways than you would normally expect to see from real estate loans. As a result, you can take the money you get from financing one building and use it to purchase another, making an effective hedge against the risks inherent in a new acquisition. You can also use this process to get working capital out of your real estate portfolio entirely so it can be used to fund new businesses.

Program Parameters

  • 600 or higher credit score
  • W-2 or self-employment verification
  • Up to 65% LTV for warehouses, office space, and other commercial properties
  • Up to 70% LTV for 1-4 unit residential buildings
  • Up to 75% LTV for 5+ unit residential buildings
  • Buildings must not be owner-occupied

Contact one of our associates today for help starting your application.