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Commercial stated income loans are loans that are provided on the basis of the 'stated income', shown according to the bank statements submitted and has numerous benefits attached to it. These loans were traditionally provided based on the income that was "stated" (hence the name) without any proper scrutiny or documentation, which was one of the reasons responsible for the 2008 housing market crash in the United States. So, for sometime, these loans were not available but now, they are back and that's a big good news to the savvy commercial real estate investors.
However, it needs to be noted that these loans do not require too much of documentation as opposed to other traditional forms of financing or refinancing. The borrowers are not asked to submit their W-2 forms or their stubs to the lenders but are only asked to submit few documents including the bank statements of past 12 to 24 months. Thus, these loans are also best suited for borrowers and investors who are self employed and who do not have a consistent income flow every month. What are the things that are paramount in availing stated income commercial real estate loan? • Stated income commercial lenders look for a Loan To Value Ratio of 70%. This may vary from one lender to another or from one lending institution to another, but that's an average LTV ratio you need to have in place in order for you to qualify for commercial stated income loan. • The stated income commercial lenders will require a credit score of above 600 to consider and qualify your loan request. • These loans are available for W-2 employees or self employed professionals. • These loans generally require a time period of 15 to 20 working days to process, again varying from one lender to another. • The rates of interest charged by banks or private money lenders when it comes to stated income commercial real estate loans dallas tx is higher. This is justified as they are trusting you with the loan amount without having any collateral or without being sure of the income flow you have and its regularity. Those being the main features of the stated income loans, remember that stated income loans take quite a long period of time to process, and banks or private money lenders will assess your loan application carefully before they decide to lend you the needed money.
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