Stated Income Commercial Loans

SUCH LOANS ARE NO LONGER PROVIDED BY US

You may have heard of the stated income commercial loan program if you are a business owner and are looking to get funding for a commercial loan. You may be wondering what the stated income program is all about and if it is right for your business. There are a lot of factors that may make a stated income commercial loan the right choice for your business. They are available to businesses who may not have a lot of income built up or credit established and depending on if the guidelines are met or not, they could be a good alternative for your business. Some of the key factors that stated income loans can offer include the following:

• No income verification
• Lending in the name of the LLC, company, corporation or family trust
• The seller of the loan is able to get up to 90 percent of the CLTV
• There can be gifts of equity that are allowed
• There is no employment checks or follow ups
• There are no IRS 4506 requirements that have to be made to receive the funding
• There can be an unlimited amount of cash out opportunities in some cases with the option to refinance
• There can be inherited properties that are available with cash our opportunities
• Blanket mortgages are also a possibility

With a stated income commercial loan, there is not the hassle of having employment checks done and the usual kinds of delays that can occur with traditional commercial loans. With a stated income commercial loan, there is often not a lot of other requirements such as income verifications and the like that are a necessary part of many other commercial loans. As with any type of commercial loan, when you are considering your choices, you do want to make sure that you are aware of everything that is part of the loan and also that you are aware of any risks or high rates that could be associated with the loan.

There are certain risks that can be associated to this type of commercial loan and fees that can be associated with it or any other kind of commercial loan so you should be sure that you are always getting the most up to date information and all of the information that you need to make the right decision for your business. Lenders and bankers have gotten more strict on their requirements and guidelines when it comes to lending for commercial loans because there have been a lot of loans that have ended up in default and have had to have properties foreclosed on due to lending to businesses who were not really qualified to receive the funds and were not able to make their payments.

When you are ready to consider applying for a stated income commercial loan, or any other type of commercial loan it is important that you talk to your lender or banker and work closely with them to help you determine if it is the right move to make and will benefit your business. There can be other alternatives that are a better deal for your business also. Lending professionals are there to help guide you along in the process and want your business to succeed as you do.