When you want to invest in commercial real estate, it is crucial to be keen on several factors. How to finance your project is among the crucial factors to consider. Note that investing in commercial real estate can be costly, and you need a sustainable financial plan to achieve your objectives. While there are several financing options, utilizing stated income loans can work best for you. Here is what you should know about this financing option.
What Is a Stated Income Loan?
Before getting approval for your loan application, most lenders will check your paycheck, your credit history and dictate that you provide collateral. However, with most commercial real estate investors being self-employed, securing the needed funds becomes hard. During an economic crisis, it becomes hard to secure funds and handle their projects. The availability of stated income loans becomes an alternative as commercial real estate investors secure the funds without putting collateral in line.
Getting a stated income loan approval is faster than other types of loans, especially for self-employed commercial real estate investors. This financing option helps people meet their investment dreams even in an economic crisis.
How to Qualify for Stated Income Loans
Proof of Self-Employment
Before applying, prepare a proof of self-employment. Note that the lender will check on your employment status as a commercial real estate investor before approving your application.
Prepare Your Financial Statements
Apart from proof of self-employment, you should also present your financial statement to the lender when applying for stated income loans. Providing your financial statement is also a show of trust and confidence to the lender.
Declare Your Investment
You should declare and show your investments to the lender when applying for a stated income loan. When the lender knows about your investment, it becomes easier to meet your objectives as a self-employed commercial real estate investor.
Benefits of Stated Incomes Loans
Unlike other types of loans, there is less paperwork when applying for stated income loans. This also makes the process simple and effective.
Payment Sourcing is Faster
Once you declare and prove your self-employment status, getting loan approval becomes easier. You also receive funds faster than other types of loans.
The knowledge you have about stated income loans can influence your application process. Call or visit Signal Peak today for professional guidance.