Stated Income Commercial Loans

Stated Income Commercial Loans

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Stated Income Commercial Loans: Company No Longer Punishing People For Having Good Credit When was the last time you went to the bank for a commercial or investment property loan? Did you think you were hearing The )mperial March ȋDarth Vader’s ThemeȌ asYouyou walked in the doors? might as well have been. This might have been the response you received at the bank. Ever since the U.S. economy almost totally collapsed some years back, more laws have been passed to minimize the risk of banks and lenders making bad loans. Between Dodd-Frank, Sarbanes-Oxley and a host of other new laws,it’s no wonder it’s stricterand it takes longer than it ever did to get a commercial or investment property loan. Banks also distinguish between Dzperformingdz loans and Dzprofitabledz loans. Did you know you could take out a loan and never be ONE SECOND LATE on making a payment and your loan could be reclassified as a non-profitable loan? Yep. Each year you’ll have to provide documentation ȋfinancials, insurance etc.) tDid you know if you’re late providing to be in compliance with the bank. hat documentation, your loan could be reclassified as non-profitable. NICE. Don’t get me wrong. The A+ borrowers will still get financing on the A+ deals, although it takes even them a little longer to get it done than before. So what happens if it’s NOT an A+ deal? What if you’re looking to buy a site that’s foreclosed, REO (Real Estate Owned) or just has poor or nofinancials?

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Published 03 April 2015
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Stated Income Commercial Loans: Company No Longer Punishing People For Having Good Credit When was the last time you went to the bank for a commercial or investment property loan? Did you think you were hearing The )mperial March ȋDarth Vader’s ThemeȌ asYouyou walked in the doors? might as well have been. This might have been the response you received at the bank.
Ever since the U.S. economy almost totally collapsed some years back, more laws have been passed to minimize the risk of banks and lenders making bad loans. Between Dodd-Frank, Sarbanes-Oxley and a host of other new laws,it’s no wonder it’s stricterand it takes longer than it ever did to get a commercial or investment property loan. Banks also distinguish between Dzperformingdz loans and Dzprofitabledz loans. Did you know you could take out a loan and never be ONE SECOND LATE on making a payment and your loan could be reclassified as a non-profitable loan? Yep. Each year you’ll have to provide documentation ȋfinancials, insurance etc.) tDid you know if you’re late providing to be in compliance with the bank. hat documentation, your loan could be reclassified as non-profitable. NICE. Don’t get me wrong. The A+ borrowers will still get financing on the A+ deals, although it takes even them a little longer to get it done than before. So what happens if it’s NOT an A+ deal? What if you’re looking to buy a site that’s foreclosed, REO (Real Estate Owned) or just has poor or nofinancials? Properties with no or poor financials aren’t all created equal. 1)Owner could have experienced health issues 2)Owner could have gone through a divorce 3)Owner could have a partner split 4)Property could have been passed to children that have poor business skills
You could come up with dozens of conceivable reasons why a site has poor financials that are not attributed to someone having poor business skills, a poor economy or a bad area. Yet people who might have great credit can’t get financing because of the financials on the property in question.It is because of situations like this thatstated income loanswere created. It was specifically created for people with good credit in less-than-ideal situations such as thoselisted above. )f you’re looking topurchase a site with poor financials, no financials, foreclosed properties, REO’s,stated income commercial loansmight be just the fit for you! Is it going to be as competitive as an A+ deal? Of course not. However, your calculator will never lie to you. You can figure out the ROI (Return On Investment) or COF (Cost Of Funds) and know whether it’s your best option. Stated income commercial mortgages are a good fit between DzAdzpaper financing and private financing. Some of the most attractive features of stated income commercial loans are: No Business Returns Needed No Personal Returns Needed No Financials Needed Seller Held Seconds Allowed Foreign Nationals Allowed Average 30 Day Closings Approvals in 24-48 Hours Loans Up To $5,000,000 How great is THAT? About the only financials you would have to provide if it is for an investment property. )n that situation, you’d submit a rent roll and a copy of the leases.From an underwriting point of view, the Loan-To-Value (LTV) will not be as high as anDzAdzpaper deal, but you still get high advances. Normally properties need to be in areas that are not rural so that an appraiser can get sufficient comparable sales (comps) to make sure the site is neither over nor undervalued. Most property types are eligible but a few are ineligible or done on a limited basis. Another attractive feature about stated income loans is they frequently have unlimited cash-outs. This is good if you’re looking to make an additional purchase or to rehab an existing property you have now. Stated income commercial loans may or may not be the best choice for you, but it’s certainly a viable option for many. Contact PetroMAC today to learn how to qualify. PetroMAC http://www.statedincomeloansource.cominfo@statedincomeloansource.com(202) 478-0230