Why Use a Conventional Loan When a Stated Income Loan Promises Faster Funding?

Are you looking for a way to consolidate your debt, improve your property, purchase property, refinance, or find working capital? Most investors and business professionals will seek a conventional loan, but that is not always the best solution. Traditional loan programs through traditional institutions typically have strict guidelines for loan approvals. Those guidelines often require pristine credit history and a record of positive financial investments and performances. Unfortunately, every investor or business professional will not meet these high standards. If you don’t think that you can meet these standards, you might want to consider applying for a stated income commercial real estate loan. Our Loan program places more weight on the property value than on the creditworthiness of the applicant.

Stated Income Commercial Loan Fundamentals

A stated income loan does not have the same scrutiny as a conventional loan program, but there are still things to consider. Some of the many considerations include:

• Low qualifying credit score of 600
• 25 year amortized loans
• W-2 or self-employment documentation
• Loan limits of $500,000
• 65% to 75% LTV depending on property type
• Fixed rates

Why Choose a Stated Income Loan Over a Conventional Loan

There are two primary reasons to select a stated income commercial real estate loan over a conventional loan: application requirements and time. To be approved for a traditional loan, a lender must do a deep dive into a borrower’s financial history, including their credit history and business history. All of these checks and balances take a significant amount of time.

A stated income loan, however, does not require as much background information.  If a borrower meets the minimum qualifying requirement of a 600 credit score, we will look to the property value. With fewer requirements, we can reach an approval decision and fund your loan within three weeks.

Are you interested in pursuing a stated income loan? Contact a Level Up Capital representative to discuss the specifics.