Purchase Real Estate Faster With a Stated Income Loan

The high value of a real estate loan makes it perhaps the most difficult type of financing to secure. The mortgage approval process can be lengthy, and many potential borrowers simply don’t have the documentation required to obtain a traditional loan.

For business owners, this can be a particularly frustrating process. As we all know, time is money. Stated income commercial real estate loans solve this problem.

How Can a Stated Income Loan Help My Business?

Instead of a detailed investigation of your current income and credit history, emphasis is placed on the earning potential of the property in which you’re looking to invest. While you’ll still need an adequate credit score of at least 600, this is generally lower than a conventional loan would require.

These loans are fixed-rate with 25-year amortization. This allows you to plan the future of your business and invest in it wisely.

How Much Is My Loan Worth?

The beauty of stated income commercial real estate loans is your ability to use cash in the bank instead of income to prove your financial acumen. This type of loan is the perfect option if you’re not currently earning income but have a healthy savings account to cover your mortgage payments. Your down payment will be higher, but your approval process will be much quicker.

Here is a rundown of how much these loans will cover:

  • Self-storage and warehouse properties, as well as any auto service, office or retail space will result in up to 65% loan-to-value, or LTV.
  • Rental properties containing 1-4 units, where the owner will not occupy the space, yields up to 70%.
  • Rental properties with more than five units may reach 75% LTV but may also require a credit score of at least 700.

If you’re looking to make your next commercial real estate purchase quickly, a stated income loan is just what you need. Contact Oxbow Capital Partners, and let us help you with your commercial real estate investment.