Why Real Estate Investors Love Stated Income Loans

Commercial real estate financing is challenging, especially when you opt for traditional or conventional loans. Conventional loan programs require a lot of work from applicants, and they also demand excellent credit. A stated income commercial real estate loan is likely a better option for many real estate investors.

As a prominent lender in commercial real estate, Regal Point Capital Solutions understands the many benefits of stated income loans. For one thing, stated income loans have less stringent credit requirements, allowing borrowers with a qualifying score of 600. Also, applicants do not have to jump through so many hoops.

Conventional Versus Stated Income Loans

Conventional lenders require a significant amount of paperwork because of regulations. They also require higher credit scores from applicants because they need to lower their backend risks significantly.

A stated income lender is less concerned with paperwork and high credit scores and more concerned about property value. The loan requires the property value to be enough to cover the insurance, mortgage, and taxes on the loan. Because we worry more about property value, we can allow borrowers with lower credit scores. We can also make the application process much easier by requiring less paperwork and financials.

Stated Income Basics

While stated income loans are excellent options for real estate investors, there are several things you should know. Every loan has several characteristics, including:

• Loan limits of $500,000
• Loan terms of 25 years with fixed rates
• LTV is between 65% and 75%, depending on the property
• Minimum credit score of 600
• Self-employment documentation or W-2s

Contact Our Team Today

Stated income loans are good options for almost any property type. Also, the funds are helpful for purchasing, refinancing, or consolidating debt. Are you ready to secure financing for your next commercial real estate project? Contact a Regal Point Capital Solutions representative to learn more about stated income loans and the application process.