Using Stated Income Loans to Empower Your Portfolio

If you are managing properties as a core business, you probably already realize that the many options for real estate financing are necessary, and you always need to evaluate the best choice for your next move. Sometimes that’s a conventional loan, with values based on the resale value of the property. At other times, though, you need loans designed to facilitate your consolidation of equity, so you can do more while managing your risk. That’s where stated income commercial real estate loans come in.

How Stated Income Loans Work

There are two key features of stated income loans that make them so powerful. The first is the fact that they allow for cash-out refinancing, so you can use one property to fund another. The second key feature is the ability to value the property based on its earning capacity rather than its resale value, which is reasonable for income-producing assets you aren’t looking to resell. The result is a powerful way to let your highest performing assets carry the cost of your expansion, making it easier to expand your holdings quickly.

Stated Income Loan Parameters at W. Reynolds Commercial Capital

  • Credit score of 600 or higher
  • Self-employment verification or W-2
  • Up to $5 million
  • Purchase, refinance, or cash-out refinance
  • Up to 65 percent LTV for commercial properties
  • Up to 70 percent LTV for 1-4 unit residential properties
  • Up to 75 percent LTV for apartment properties
  • No owner-occupied properties

Get the Financing You Need Today

Using stated income commercial real estate loans to move equity throughout your portfolio also means reducing the number and type of real estate loans you need. Use them to consolidate your income and expenses and see how much easier it is to increase your returns when you have the right financing for your business cycle.

For information about applications or answers to your questions about the program, contact us today.