Finance Your Next Business Move With a Stated Income Commercial Real Estate Loan

Stated income commercial real estate loans are powerful financial instruments designed to help you get the most out of your capital, whether that is by moving equity, investing in remodeling, acquiring new buildings, or maximizing the profitability of your businesses with extra income streams. They work differently than conventional loans, which are usually tied to the acquisition of improvement of a single property, because they do not work from the resale value from the building. Instead, they work from its income earnings.

Stated income loans are approved by ensuring that the property the loan uses as security has the earning potential to meet the loan costs while also budgeting for taxes, maintenance, and the other requirements of operation. This makes the criteria more like other business loans.

Cash Out Refinancing

Since stated income loans are not tied explicitly to the improvement or acquisition of a building, but instead to its income, they can be used for standard acquisitions and refinancing. They can also be used for something called a cash out refinancing, in which the loan’s funds are used elsewhere. This means you can finance a top performing building to cover the costs of your latest acquisition, or you can use your top earners to finance remodels on properties whose earning potential you would like to increase.

Program Parameters

Falcon Americas Finance, provides its stated income commercial real estate loans within the following requirements and parameters:

  • Up to 70% LTV for 1-4 unit, non-owner occupied properties
  • Up to 75% LTV for 5+ unit properties, again non-owner occupied (700 credit score required for full 75% LTV)
  • Up to 65% for warehouses, retail spaces, automotive repair shops, restaurants, office buildings, and other commercial spaces
  • 600 credit score to qualify
  • W-2 or self-employed
  • Available in amounts between $100,000 and $5 million

Talk to one of our associates today to learn more about how your business can use stated income loans to expand.