You
would probably go through a bunch of hoops for securing a commercial real
estate loan to fund your housing or real estate investing needs, unless you
have all the money in cash stacked up to make a purchase. So, that leaves the
majority of us trying to get our hands on the best kind of loans there are to
finance our needs. For many people, it won't be very hard to find the best
loans in the market, but for the remaining lot of people who do not have a
steady income flow every month, it's quite challenging to find the right loan.
In
other words, if you are self-employed and do not have a consistent income
patterns, it is very hard to get your hands on best type of loans because most
lenders are looking to provide loans to people who can verify their income.
However, to your rescue there are stated income commercial lenders in the
market who provide commercial stated income loans.
So, what are commercial
stated income loans?
Stated income commercial real estate loans are loans that
are provided to self-employed borrowers who cannot provide proof of income as
their income patterns are irregular or inconsistent. They are also
provided to people who have poor credit scores and find it difficult to avail a
loan to finance their needs. In other words, commercial stated income loans are
loans that are provided on the basis of the income that is "stated"
and not verified.
Are they available in the
US market?
Stated
income commercial real estate loans are still available in the US market,
yes, but with a little change in how it is executed and lent. Earlier, these
loans were lent merely on the basis of the income that was 'stated' with zero
check on anything and that created a huge housing market crash in the year
2008. In today's scenario, these loans are still available but the lenders
however will seek a little verification in the form of bank statements of the
past 10-12 months as a proof. So, it is wise to say that stated income
commercial real estate loans are still available but you will now need to
provide a proof of your income, even if it's irregular of the past 12 months to
your stated income commercial lenders.
