Stated Income Commercial loan for your commercial property

How To Get A Loan From Commercial Real Estate Lenders

Many real estate investors are now turning their eyes to commercial deals. Much of the financing for residential properties became more difficult to obtain. But with more activity in the commercial area and with the supporting rents, commercial real estate finance lenders have approved more commercial deals.

Commercial loan is the primary service provided by most Commercial Hard Money Lenders. It is a short-term investment property loan, which is solely based on the value of real estate that is used as collateral.

Financial Benefits of a stated income commercial Loan include:

Less Documentation The stated income commercial loan requires less documentation than a traditional commercial loan. In many cases since the loan is only underwritten to the properties cash flow or potential cash flow it is not necessary to provide as much documentation.

Easier approval process This commercial loan has an easier approval process because it does not have to be underwritten to both the property cash flow and a secondary repayment source such as the borrowers personal income.

Examples of a typical stated income commercial loan borrower include:

A self employed small business owner that does not report all of their income on their tax returns who is looking to purchase a commercial property using a commercial loan.

A real estate investor that does not show the amount of income necessary to qualify for a traditional commercial bank loan but the property has rental income that will support the debt payments.

One advantage of Commercial Hard Money Lenders over Commercial Lenders is flexibility of loans. For example, if the purpose of commercial loan or mortgages is to finance investment such as gas stations, dry cleaners, assisted living facilities, the conventional banks do not approve such loan. However, hard money mortgages are available to the rescue.

In order to be successful in commercial real estate loan, few factors come into play. First, a down payment is required. It is very rare that a real estate loan is granted without giving the stipulated down payment, which can be as high as 30% of the total loan value.