Property Types

Glossary

Checklist

COMMERCIAL REAL ESTATE FUNDING

STATED INCOME / STATED ASSET PROGRAM HIGHLIGHTS

This page describes the Stated Income/Asset Program. That means full document paperwork isn’t required – and you enjoy greater flexibility and faster turnaround times.

• No tax returns required

• No income verification

• Unrestricted cash-out

• Loan amounts under $1 million

• Secured on commercial properties like multifamily, mixed use, warehouse, office, retail, industrial, automotive, special use and more

• Several affordable payment options

• Automatic payment options – no more writing checks

• Fixed or adjustable rates

• 15 to 30-year amortization

• Loans to corporations, partnerships, and trusts ok

This loan type is used when the property’s Net Operating Income cannot be proven through tax returns and the income needs to be “stated” by the borrower. The word “property” is emphasized because it is the property’s income that is the focus of a commercial loan. If a property is an income type property such as an office building or a business property such as a restaurant than the tax returns should reflect the true income made through the property. In cases where the borrower wishes to purchase a property, the seller might be unable or unwilling to show appropriately profitable tax returns, thus the stated income loan can solve the problem. In other cases where a borrower wishes to refinance his existing mortgage and his previous two years tax returns do not reflect a strong enough Net Operating Income, the stated income loan can be the answer as well.

The key to our stated income loan is that we will allow the borrower to “state” their income for loan purposes. Of course the “stated” income must make sense. We ideally would still like to see the tax returns in case we can make the loan fit our full income verification standards. However, if the tax returns will not work, then we will ignore the tax returns and typically not require any additional proof of income. By allowing the borrower to “state” the property income, we in effect are trusting the borrower’s ability to make the monthly mortgage payments. Due to the added risk of the “stated” income, the interest rates are higher when compared to a standard Grade “A” loan. Typically the Loan-to-Values can range from 55% to 80%. We can handle just about any type of property under this loan except raw land and gas stations.

Who needs this type of loan?

ELIGIBLE PROPERTIES

Financing Provided For A Wide Variety Of Properties.

Use the expertise of real estate professionals to determine the proper value for your clients’ commercial property – and take advantage of the simplicity and speed of programs to simplify their financing. Eligible properties include:

• Mixed Use/Apartment Buildings – These properties integrate residential spaces with commercial uses, such as retail or office space. Often these properties have a ground floor retail store or office with apartments above, all in the same building.

   

• Self-Storage Facilities – Now one of the most competitive building classes in the country, these facilities are designed primarily for storage. This category also includes cold storage, RV and boat storage facilities, and truck terminals (transit facilities).

   

• Retail/Office Buildings – Designed for retail or office sales and display, this category includes stand-alone buildings such as offices, supermarkets, convenience stores, drug stores, department stores, bakeries, and beauty shops – as well as strip centers, and neighborhood and community shopping centers.

   

• Warehouses/Light Industrial Properties – Single and multi-tenant facilities that are used for warehousing, light manufacturing, distribution, research and development. Does not include buildings where heavy manufacturing or specialized industrial operations such as welding occur.

   

• Automotive Services – Includes everything from auto repair facilities to retail auto shops and part supply stores.

   

• Special Purpose/Unique Properties – We will consider all commercial and unique properties that fall within our program guidelines and loan amounts, including day care and educational facilities, funeral homes, campgrounds, outdoor entertainment centers, trailer and mobile home parks and marinas.

   

• Hotels/Motels – With industry knowledge and expertise, this program services the non-flagged world of hotels and motels better than most lenders. The valuation assumptions are based on facts relative to the specific property.

   

• Restaurants – Competitively priced financing for a wide range of properties, including owner-occupied and leased facilities as well as fast-food and full-serve restaurants in neighborhood settings or urban.

   

• Multi-Family Housing – Residential structures that contain five or more dwelling units in the same building. These multi-story buildings generally offer individual apartments for rent with common area facilities, such as an entrance, lobby, elevator, stairs, hallway, walks or grounds.

   

• Health Care – Included in this category are all Assisted Living or Nursing Home types of operations where a license is required to operate the business.

      Ineligible properties include: