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Get the Facts about Stated Income Commercial Loans
Hard money commercial loans are primarily based on the value of the collateral and the borrowers exit strategy. There are times when we will make a loan to a borrower that has recently come out of bankruptcy or is close to filing bankruptcy if we understand the exit strategy of the borrower. By way of example if a borrower is close to loosing a property to a bank because they are behind in payments and their exit strategy is to sell the property to protect their equity this is a loan we would likely make provided we believe the borrower can sell the property within the time limits allowed by our loan. Another example of a loan we would likely make is to a borrower that has poor credit and wants to refinance an existing loan or take cash out of the property to fix it up or for another purpose. Poor credit is not a deal killer for us as long as we understand the circumstances and believe that our loan will be repaid.
Our interest rates are higher and our fees are more expensive than a conventional loan but our underwriting standards are more lenient and we are able to close a transaction much quicker than a conventional lender in most instances.