Stated Income Commercial Real Estate

What’s the Difference Between a Stated Income Loan and a Conventional Loan?

At Lighthouse Capital, we provide a wide range of financing options for small business owners. This includes financing programs for equipment, inventory purchases, hiring costs, working capital and real estate. Some businesses choose our conventional real estate loans while others prefer stated income commercial real estate financing. What’s the difference?

What Is Stated Income Commercial Real Estate Financing?

One of the main differences with a stated income loan is that it’s based on the piece of real estate you want to buy, not on your company’s finances. There are still some credit score requirements and cash flow requirements, but they’re far less important than with a traditional real estate loan. This is because a stated income loan uses the property in question as collateral for the loan.

This type of financing works with office buildings, restaurants, apartment buildings, warehouses and countless other types of commercial real estate. If you’ve been trying to get approved for a loan for some time, this financing program can help you purchase the real estate you need for your business.

How Can You Apply for Stated Income Commercial Real Estate Loans?

Before filling out the application, we encourage you to gather documentation related to the property you want to purchase. This helps us to move forward with processing. The total loan-to-value ratio for this financing is a percentage of the property’s value. We provide significant financing for your preferred property, helping you buy the real estate, remodel it or make other changes.

You need to provide some information about your company as well, such as time in business, credit score and balance sheet. However, these factors are secondary with a stated income loan. You don’t need excellent credit to quality.