Turned Down for a Real Estate Loan? Try Again with Stated Income Financing

If there’s one thing business owners know, it’s the importance of not giving up. To have a healthy company, you can’t let a few obstacles get in the way. Getting a commercial property can be a huge turning point for your company, so you shouldn’t give up on that goal if you were turned down for a traditional mortgage. Think outside the box with stated income real estate loans from Chess Capital.

Fewer Requirements and Easier Qualification

The main differences between stated income financing and traditional real estate loans are the requirements for approval. It’s much easier to qualify for a stated income commercial real estate loan. Why?

  • The real estate you want to buy acts as collateral:You can qualify for favorable loan terms because the property you’re interested in helps to reduce risk. You don’t need outside collateral such as inventory or heavy equipment to qualify.
  • The loan is based on the value of the property, not your credit score:Stated income loans provide a percentage of the property’s value as a loan. This is called the loan-to-value ratio, or LTV. As long as the property covers the loan’s principal, closing costs, taxes, and insurance, qualifying is relatively simple.
  • Stated income loans have a larger down payment:Many traditional loans allow you to decide how much of a down payment to provide, sometimes as little as 10%. With stated income financing, you generally need 20%–30% as a down payment, which is optimal for loan terms anyway.

Faster Loan Approval and a Simpler Application Process

Another benefit of stated income commercial real estate financing is that the loan gets approved more quickly. Conventional loans may take many months, whereas stated income loans are ready in a few weeks. You only need basic business information such as W-2s with your application.

Contact us right away to get started. We provide excellent loan terms and interest rates.

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