Easy Access to Commercial Real Estate Loans
Commercial real estate investors need financial tools that are designed for their business structure. Conventional loans are built for those buying property as an investment, not those who make property investment their business. Whether you are looking to use cash-out refinance to fund another venture, consolidating risk in your most productive properties, or financing renovations that will increase your income, your needs are different from those who are buying property for facilities or for resale. That’s why stated income commercial real estate loans are a better fit than traditional options.
How Stated Income Loans Work
When you apply for a stated income loan, the building’s earning capacity is used as the metric for lending instead of its value on the resale market. For those who manage properties, this represents a more accurate view of the cash available to sustain the loan, and for those seeking funding, it provides flexibility to choose the properties most suited to support the loan. There are a variety of program parameters that dictate the loan’s LTV according to the property type:
- Up to 70 percent LTV for residential properties with one to four units
- Up to 75 percent LTV for mixed used properties
- Up to 65 percent LTV for warehouses, self-storage, office, retail, auto service properties
In addition to these parameters, the properties cannot be owner occupied.
A few benefits of working with us are:
- Large loan amounts up to $500,000
- Fixed rate instruments
- No restriction on use of proceeds
- Up to 25-year amortized loans
- Credit Score as low as 600
- Nearly all property types are welcome
Purchase, Refinance, or Cash-out Refinance
Since these loans are flexible, they can be used for any purpose, including both purchases of new properties and cash-out refinances. Consider how an income based loan will help your next property purchase, then give our associates a call to discuss. We can even help you start an application for your stated income commercial real estate loan over the phone. If you are looking to expand or change your property investment portfolio, and need funding tailored to your needs, contact BizCap Commercial Finance today.