What Is Stated Income Commercial Real Estate Financing?

Whether you’ve recently been turned down for real estate financing or you simply want to simplify the application process, a stated income commercial real estate loan may be the perfect choice. This option is similar to a traditional bank loan as far as capital amounts go, but it offers several distinctive benefits for business owners with less-than-ideal credit. Here are the answers to several common questions about this flexible financing solution.

What Kind of Credit Score Do You Need To Qualify?

One of the biggest advantages of applying for stated income real estate financing is that it accommodates a wide range of credit scores. While each business is unique, generally speaking we look for a score of 600 or above. This is in the “fair” credit score category. That means that even if you company has below-average credit, you can still get approved for a loan that allows you to purchase excellent real estate.

How Many Business Documents Do You Need To Show?

Another benefit of this type of real estate financing are the minimal document requirements. The application process is far simpler than proving your company qualifies for a government-backed SBA loan, for example. Usually, we request documentation that shows your company’s corporate structure or proof of business operations. It’s good to prepare limited financial documents such as balance sheets as well, but you don’t need to go to an extreme. What we’re primarily looking for is evidence that you’re doing your best to run a successful business.

How Can You Use a Stated Income Commercial Real Estate Loan?

There are many uses for this type of financing. It’s especially helpful for business expansion:

    • Buying a business property
    • Purchasing an investment/management property
  • Remodeling existing business locations
  • Consolidating business loans
  • Refinancing loans to minimize interest rates
  • Acquiring working capital

This type of loan is popular with restaurateurs, owners of retail businesses, real estate investors, small business owners and other entrepreneurs. To apply, contact our friendly team right away.