Stated income loans are some of the most efficient solutions commercial real estate investors can access. They have less red tape, more flexibility, and can be used by commercial real estate investors at all levels. However, not many people understand how stated income loans work, which is why the team at Golden Century Lending has put together this primer.

Stated Income Loans Are Designed for Self-Employed Investors

Traditional lenders prefer to deal with people who can prove they draw a steady paycheck from an employer. That allows banks to not only check on the applicant’s financial standing, but also that of the company they work for. Self-employed commercial real estate investors are seen as high-risk applicants, because commercial real estate does not always yield the revenue that banks like to see. By contrast, a stated income loan requires a bank statement, the most recent tax return, and not much else. This makes financing accessible to self-employed property investors.

Fast Approvals and Processing Times

Traditional loans are known for their red tape. Applicants must supply a lot of paperwork and meet the high requirements of the bank. Then the application gets passed from department to department until a loan board makes a decision. If a commercial real estate investor is working on a schedule, the processing time can cause them to miss out on lucrative opportunities. Since stated income loans have minimal paperwork, investors can cut through the red tape and get right to the approval stage. Additionally, once approved, funds are made available quickly.

More Flexible Use of Funds

Traditional loans have very specific guidelines on how funds can be used. If a commercial real estate investor deviates from those guidelines, they might find themselves in violation of the loan agreement. Stated income loans offer more flexibility, so commercial real estate investors can use the funds however they see fit for their projects or transactions.

Learn More About Stated Income Loans

Golden Century Lending provides stated income loans with minimal paperwork and fast approvals. To learn more, contact our offices today.