Advantages of a Stated Income Loan for Commercial Real Estate

Real estate investors understand the challenges of property financing, especially when taking a traditional route. Conventional lenders must follow strict regulations that make the application process somewhat of a nightmare. At Quantum Commercial Capital LLC, we specialize in stated income commercial real estate loans, which offer a more streamlined path to financing and ownership.

Stated income options offer faster turnarounds than traditional loans. Property investors have more options for how they use the funds as well. However, while stated income loans are easier to get, they still have basic requirements, such as a credit score of 600.

Stated Income Loans Versus Traditional Loan Programs

Traditional lenders must jump through hoops to approve loans, meaning applicants must also work for the loan. Most regulatory bodies require mounds of paperwork to even apply for a conventional loan.

A stated income lender depends primarily on the value of the property. If a property’s value can cover the loan’s taxes, insurance, and mortgage, applicants will rarely have to jump through too many hoops. Applicants only need to supply minimal financial information, such as W-2s or self-employment documents.

Stated income loans are more beneficial than conventional loans to property investors. Real estate investors depend on speedy financing.

Advantages of Stated Income Loans

Besides the speed of the application process, stated income loans have several advantages for qualified borrowers. The primary benefits of these loans include:

• Fixed rates
• Loan limits of $500,000
• 25-year amortization
• Between 65% and 75% LTV, depending on property and use

Despite the benefits, some stated income loans will require a higher credit score. A multifamily or mixed-use property with at least five units will require a qualifying score of 700 instead of 600.

Contact Our Team to Learn More

Are you ready to secure financing for your next real estate project? Contact a Quantum Commercial Capital LLC representative to discuss your options and the application process.