When it comes to financing commercial properties, traditional bank loans can be limiting and challenging to secure, especially for small business owners or self-employed individuals with unsteady income streams. The stringent requirements, such as high credit scores and solid proof of income, often create high entry barriers. This is where stated income loans come in handy. These loans don’t rely on traditional metrics for approval, making them an attractive alternative for many property investors. Here are five reasons to consider stated income loans for commercial properties.
1. Easier Approval Process
Unlike traditional bank loans, stated income loans do not hinge on high credit scores or an extensive credit history. The approval process mainly focuses on the property’s value and its capacity to generate revenue. This flexibility makes the approval process less stringent and more accessible for many borrowers.
2. Quick Funding
In the world of commercial property acquisition, speed is often of the essence. Stated income loans typically have a faster approval and funding process compared to traditional loans. This swift process allows investors to seize time-sensitive opportunities and close deals swiftly.
3. Flexibility in Use
Stated income loans are versatile and can be used for a range of purposes such as purchasing a property, refinancing an existing loan, or even renovating commercial property. This flexibility allows investors to adapt to the ever-changing commercial real estate landscape.
4. Ideal for Self-Employed or Non-traditional Borrowers
For self-employed individuals, freelancers, or small business owners, documenting a steady income stream can be a herculean task. Stated income loans offer a viable option as they focus more on the income-generating potential of the property rather than the borrower’s personal financial status.
5. Less Paperwork
The application process for a stated income loan usually involves less paperwork compared to traditional loans. The reduced emphasis on personal financial documentation makes the application process more streamlined and less time-consuming.
In conclusion, stated income loans offer an alternative route to financing commercial properties, providing accessibility and flexibility. However, like any financial decision, it’s essential to conduct thorough research and consult with a financial advisor to understand the potential risks and rewards fully. If want to take advantage of the benefits that stated income loans have to offer, contact Royall Capital Funding.