How to Use Stated Income Loans for Commercial Properties
If you use commercial properties as your main method of earning income or supporting your business, you already know how important it is to use every venue available to you in order to keep profits moving smoothly. This means knowing every venue available to you. Most people don’t know that stated income can be used for commercial properties as well as residential ones, but this is indeed an excellent resource for anyone looking to secure some commercial property with minimum risks.
What are They?
Though they go under many different names, these loans all center around one fact; borrowers don’t have to provide proof of their income via tax forms or other documentation in order to qualify for the sum of cash they’re looking for. The ability to repay a loan will need to be proved in other ways, of course, such as credit scores and existing finances, but overall this is a great resource for someone who perhaps lacks the track record to qualify for a traditional loan.
How to Use Them for Commercial Properties
Just like using a stated income loan for residential housing, these loans can be put towards the purchase of a commercial property if you manage to gain approval from your bank or other lending institution. While these loans were once difficult to obtain, they’re now becoming much more common. In fact, informing your lender that you aim to use the loan in question to secure a profitable commercial property may even increase your chances of approval, since this course of action will result in an overall increase in your profits, meaning the bank has more assurance that you’ll be able to pay your debts on time in the months and years to come.
In order to increase your chances of getting approved for your loan when you decide to purchase your next commercial property, it’s important to complete a few steps. First and foremost, always remember to shop around when it comes to getting a stated income loan. Some lenders might offer different terms or amounts based on your credit or your debt-to-income ratio, both of which are critical components throughout the process. Check that your specifications meet the requirements before applying in order to avoid wasting valuable time and resources.
Applying for a stated income loan isn’t always the simplest method of getting the financing you need, but there’s certainly a few key benefit to this course of action. Speak to a professional to help decide if this is the best course for you to take in the years to come.