Gain Working Capital with Stated Income Commercial Real Estate Loans

Traditional mortgages and business loans are designed to help companies purchase properties that house their operations and protect their company’s needs as they grow, but the way they value property is not always the best assessment for companies and entrepreneurs who make their incomes from the buildings themselves. In those cases, Clover Capital Group’s stated income commercial real estate loans provide flexibility and a method of assessing financing that commercial real estate investments need.

How Stated Income Loans Work

Stated income loans are based off the earning power that buildings have, allowing owners to finance their continued operations, new building acquisitions, and renovations based on the real earning potential of the building, rather than its resale value. This provides a more accurate assessment of the loan that can be supported by the building, and it helps to guarantee that the loan will be paid back.

Loan Parameters and Options

When looking at a stated income commercial real estate loan, it is important to know how your property type will affect your available loan size. Here are our parameters:

  • Up to 70% LTV for 1-4 unit housing that is not owner-occupied
  • Up to 75% LTV for investment properties with 5 or more units, again, provided they are not owner-occupied
  • Up to 65% LTV for office, retail, warehouse, and other commercial spaces
  • Minimum credit score of 600 needed to qualify
  • Loan sizes of $100,000 to $5 million
  • W-2 or self-employed applicants considered
  • Loans can be used to refinance, purchase, or perform cash-out refinancing

With the flexibility and options available for stated income loans, it is easy to see how they provide the right kind of flexibility for investment properties, allowing you to quickly grow your portfolio by either adding properties or reinvesting cash freely, investing in the properties that need the most attention during any given financial cycle. Talk to one of our associates today for more details about how stated income loans can help you develop your properties.