Posts Tagged ‘Personal Credit’
Stated Income Commercial Loan for Your Commercial Property
John Berardino asked:
A sicl is a commercial loan that does not require the full documentation that is required of a full document commercial loan. This type of commercial loan does not require the borrower to be able to prove that they can afford to make the loan payments from their own personal income but instead relies on the rents of the commercial property or the possible rents for the property.
Financial Benefits of a stated income commercial Loan include:
* Less Documentation The stated income commercial loan requires less documentation than a tradional commercial loan. In many cases since the loan is only underwritten to the properties cash flow or potential cash flow it is not necessary to provide as much documention.
* Easier approval process This commercial loan has an easier approval process because it does not have to be underwritten to both the property cash flow and a secondary repayment source such as the borrowers personal income.
secondary repayment source such as the borrowers personal income. Lower credit score requirements Some of these commercial loan programs also have reduced credit requirements.
Examples of a typical stated income commercial loan borrower include:
* A self employed small business owner that does not report all of their income on their tax returns who is looking to purchase a commercial property using a commercial loan.
* A real estate investor that does not show the amount of income necessary to qualify for a traditional commercial bank loan but the property has rental income that will support the debt payments.
Purpose
A stated income commercial loan is designed to help a borrower purchase real estate that they would otherwise be unable to purchase without a significant down payment. The commercial property does not have to be held in the name of the borrower or the operating company but can be held in the name of a holding company.
There are certain criteria for eligibility of this type of commercial loan.
The business that is occupying the property must be in business at least 2 years.
The guarantors credit score must be 600 or above.
The guarantor and operating company can not have a bankruptcy that is more recent than 3 years.
Structure
This commercial loan is only done on a first trust basis although it is possible to have a second trust provided by someone else. There are instances where combined total financing can be close to 100%. This depends on the type of commercial property, credit of the guarantor and other underwriting factors. Closing costs can be financed into the loan under most circumstances.
Easier than you think!
The stated income commercial loan is really meant to help people qualify for a loan without the hassle of providing the full documentation needed on a traditional bank loan.
Rates are slightly higher.
The interest rates are slightly higher for this type of commercial loan but the loans can be ortized up to 30 years.
The stated income commercial loan closes quickly in most cases.
It usually takes about 30 to 45 days from start to finish to close this commercial loan.
Borrowers do not have to use their house as collateral.
It is very rare that a stated income loan will need to use the borrowers home as collateral.
Borrowers with less than perfect credit can qualify.
Borrowers with credit scores as low as 600 can qualify for these programs. If your credit is within 40 points of this number it is possible that you may have some mistakes on your credit that we can help you fix while closing your loan. So even if your credit does not meet the 600 number today, it may when we are done with your loan. Get more information http://www.commercialmortgage.net
3 Day Approvals for Business Loans
A sicl is a commercial loan that does not require the full documentation that is required of a full document commercial loan. This type of commercial loan does not require the borrower to be able to prove that they can afford to make the loan payments from their own personal income but instead relies on the rents of the commercial property or the possible rents for the property.
Financial Benefits of a stated income commercial Loan include:
* Less Documentation The stated income commercial loan requires less documentation than a tradional commercial loan. In many cases since the loan is only underwritten to the properties cash flow or potential cash flow it is not necessary to provide as much documention.
* Easier approval process This commercial loan has an easier approval process because it does not have to be underwritten to both the property cash flow and a secondary repayment source such as the borrowers personal income.
secondary repayment source such as the borrowers personal income. Lower credit score requirements Some of these commercial loan programs also have reduced credit requirements.
Examples of a typical stated income commercial loan borrower include:
* A self employed small business owner that does not report all of their income on their tax returns who is looking to purchase a commercial property using a commercial loan.
* A real estate investor that does not show the amount of income necessary to qualify for a traditional commercial bank loan but the property has rental income that will support the debt payments.
Purpose
A stated income commercial loan is designed to help a borrower purchase real estate that they would otherwise be unable to purchase without a significant down payment. The commercial property does not have to be held in the name of the borrower or the operating company but can be held in the name of a holding company.
There are certain criteria for eligibility of this type of commercial loan.
The business that is occupying the property must be in business at least 2 years.
The guarantors credit score must be 600 or above.
The guarantor and operating company can not have a bankruptcy that is more recent than 3 years.
Structure
This commercial loan is only done on a first trust basis although it is possible to have a second trust provided by someone else. There are instances where combined total financing can be close to 100%. This depends on the type of commercial property, credit of the guarantor and other underwriting factors. Closing costs can be financed into the loan under most circumstances.
Easier than you think!
The stated income commercial loan is really meant to help people qualify for a loan without the hassle of providing the full documentation needed on a traditional bank loan.
Rates are slightly higher.
The interest rates are slightly higher for this type of commercial loan but the loans can be ortized up to 30 years.
The stated income commercial loan closes quickly in most cases.
It usually takes about 30 to 45 days from start to finish to close this commercial loan.
Borrowers do not have to use their house as collateral.
It is very rare that a stated income loan will need to use the borrowers home as collateral.
Borrowers with less than perfect credit can qualify.
Borrowers with credit scores as low as 600 can qualify for these programs. If your credit is within 40 points of this number it is possible that you may have some mistakes on your credit that we can help you fix while closing your loan. So even if your credit does not meet the 600 number today, it may when we are done with your loan. Get more information http://www.commercialmortgage.net
3 Day Approvals for Business Loans
Home Business Loans – You Must Think Outside the Box for Unsecured Funding
Floyd Tapia asked:
When is there not a time when small business owners need cash for advertising, inventory, marketing, expansion and even for start-up costs? And when asked, most business owners feel their only resources for funding were local banks and credit unions.
Now this was not said in a way to imply that one shouldn’t seek financing from a local financial institution. However, I must stress that most local banks usually want a business loan to be collateralized with personal assets such as a home or land. If know this from experience.
It’s very important for business owners to understand that you must take a proactive attitude about developing banking relationships in today’s financial community. One very good reason for this is that it is much easier to obtain small business financing than compared to personal loans.
Then you have to carefully consider the type of business funding you will attempt to attract. For example, getting unsecured business credit lines would be ideal for your business now and into the future. The biggest advantage to this type of loan is no personal credit or collateral is required.
It is vitally important to remind business owners to consider the need to protect your personal assets and your ability to minimize frivilous lawsuits that could wipe you out financially in the blink of an eye.
An experienced small business consultant can be of tremendous help in establishing your corporate identity and unsecured credit lines which in turn will free your time in dealing with more important day-to-day operations.
Here is a brief summary of important areas to re-consider now that can undoubtedly have a huge favorable impact in your company’s financial outlook.
1. Limited-Liability Corporation (LLC) – If you do not currently have a LLC entity set up, I would strongly encourage you to do so. Although not an attorney, I have personally witnessed personal assets frozen and seized when business owners are faced with litigation. Due to endless research, I ahve come to the conclusion that having a LLC can better protect your assets and estate in the untimely event you are sued.
2. Shelf Corporations or Aged Corporations – These are corporations that have been around for 2 years or longer that are in good standing with your State government. These corporations can dratistically improve your ability to obtain small business loans and unsecured credit lines since many banks will not consider financing to businesses with less than 2 years of existence.
3. Physical Street Address – If you are going to play with the “big boys” you must play like the big boys. You must have a physical street address and not a P.O. Box if you want to establish a solid business credit history. You must also have a phone number that directory assistance can list.
The bottom line is this: You must have your proverbial “ducks in a row” when steering your business down the road of expansion and profitability. Seek expert assistance and then act upon the professional advice given to you. This will make any type of business financing much easier to attain.
When is there not a time when small business owners need cash for advertising, inventory, marketing, expansion and even for start-up costs? And when asked, most business owners feel their only resources for funding were local banks and credit unions.
Now this was not said in a way to imply that one shouldn’t seek financing from a local financial institution. However, I must stress that most local banks usually want a business loan to be collateralized with personal assets such as a home or land. If know this from experience.
It’s very important for business owners to understand that you must take a proactive attitude about developing banking relationships in today’s financial community. One very good reason for this is that it is much easier to obtain small business financing than compared to personal loans.
Then you have to carefully consider the type of business funding you will attempt to attract. For example, getting unsecured business credit lines would be ideal for your business now and into the future. The biggest advantage to this type of loan is no personal credit or collateral is required.
It is vitally important to remind business owners to consider the need to protect your personal assets and your ability to minimize frivilous lawsuits that could wipe you out financially in the blink of an eye.
An experienced small business consultant can be of tremendous help in establishing your corporate identity and unsecured credit lines which in turn will free your time in dealing with more important day-to-day operations.
Here is a brief summary of important areas to re-consider now that can undoubtedly have a huge favorable impact in your company’s financial outlook.
1. Limited-Liability Corporation (LLC) – If you do not currently have a LLC entity set up, I would strongly encourage you to do so. Although not an attorney, I have personally witnessed personal assets frozen and seized when business owners are faced with litigation. Due to endless research, I ahve come to the conclusion that having a LLC can better protect your assets and estate in the untimely event you are sued.
2. Shelf Corporations or Aged Corporations – These are corporations that have been around for 2 years or longer that are in good standing with your State government. These corporations can dratistically improve your ability to obtain small business loans and unsecured credit lines since many banks will not consider financing to businesses with less than 2 years of existence.
3. Physical Street Address – If you are going to play with the “big boys” you must play like the big boys. You must have a physical street address and not a P.O. Box if you want to establish a solid business credit history. You must also have a phone number that directory assistance can list.
The bottom line is this: You must have your proverbial “ducks in a row” when steering your business down the road of expansion and profitability. Seek expert assistance and then act upon the professional advice given to you. This will make any type of business financing much easier to attain.