Why Stated Income Commercial Real Estate Financing Could Be Right For Your Business

There are numerous types of commercial financing available for small businesses but most traditional loans require an excellent credit history and large amounts of paperwork. If these aspects of the loan process don’t work for your company, you may want to consider a stated income commercial real estate loan instead. This type of funding from Blessing Capital can be used for a variety of different situations, including purchasing property, consolidating debt, refinancing a loan, and building working capital.

Traditional Loans vs. Stated Income Loans

Whereas a traditional loan primarily considers the borrower’s credit history, a stated income loan is more focused on the aspects of the commercial property in question. This means borrowers don’t have to show very much financial documentation and approvals tend to happen quickly. In stated income financing, the value of the property must cover the amount of the loan.

What You Need to Know About a Stated Income Loan

The best way to know if a stated income commercial real estate loan is right for your business is to call Blessing Capital directly and talk with one of our financial experts. However, if you want to get a better understanding of the loan details before starting the application process, here are the basics:

  • Required credit score of 600
  • 25-year amortized loans with fixed interest rates
  • Flexible funds to cover purchases, refinancing, and debt consolidation
  • Numerous property types can qualify
  • Loans available up to $500,000
  • Employment documentation required, such as a W2 or self-employment paperwork
  • Up to 65 percent loan-to-value for warehouse, self-storage, office, auto service, and retail properties
  • Up to 70 percent LTV for non-owner occupied investment properties (up to four units)
  • Up to 75 percent LTV for multifamily and mixed use properties with five or more units (may require a credit score of 700)

If you think a stated income loan may be the right choice for your business, give us a call today to learn more and get started on the application.