By Jeff Rauth. Email Here or 248 885-8797. SBA Loan Officer at a Bank That Lends Nationally. 15 Years Commercial Real Estate Experience. Past Commercial Mortgage Broker.
We understand that for tax purposes many small business owners show a loss. And or they are going through a restructuring where they have had a legitimate loss but they are in the process of turning their business around. This loan program was designed specifically for these types of situations.
Below is a description of our version of a commercial stated income loan where you can still qualify despite having negative cash flow. Here is a basic overview:
- 75% max financing (loan to value) on either purchase or refinances.
- $400,000 to $5,000,000 loan amounts.
- Nationwide lending area.
- 25 year amortization schedule with no balloon.
- Interest rate is currently 5.75% – 6% (Calculated as The Prime Rate + 2.5% – 2.75%) adjusting quarterly.
- Credit score as low as 580.
- Owner user only (Business must occupy at least 51% of the subject property. No pure investment properties.)
It is common that borrowers ask for stated income type loans because they don’t show enough profitability on their books to qualify for bank financing. This program is not tied to a bank. It is primarily loan to value driven. The lower the loan to value the more aggressive the underwriting becomes. In addition, borrowers that have a decent amount of liquidity (10% or more of the loan request) and lower loan to value are an in especially strong position.
Commercial Stated Income Loans – Program Limitations
Borrowers will still have to provide a full loan application including last 3 years of tax returns, personal financial statements, year to date financials, etc. This is not meant to be a loan program where the borrower does not have to provide documentation.
No construction/rehab or investment properties. Your business has to occupy at least 51% of the subject property.
Do have less than 75% loan to value? Does your business occupy or will occupy at least 51% of your building? Is your loan amount at least $400,000 and less than $5,000,000? If so you should give serious consideration to this program and fill out our Pre Approval Form now. There are NO application fees or retainers.
Get started now.