Stated Income Commercial Loans
Stated Income Commercial Loans Texas
Stated Income Loans: What are They?
Do you want to buy a business or commercial property but you have no proof of income? Have you been turned down by conventional lenders? Texas stated income loans offer to lend people money with no proof of income, no income tax returns and no paycheck stubs. If you want to get a business loan without going through the hassles and red tape of a traditional lender, you can apply for a stated income loan.
Under most FHA and VA loans, there are guidelines which include verification of a borrower’s income. To qualify for a traditional loan, people will need to go through income verification and provide the lender with paystubs, W-2s, and copies of tax returns.
When you go through the process of applying for a stated income loan, it’s different because it doesn’t require a borrower to prove income through documentation. People who earn income through commissions or self-employment may benefit from applying with an alternative lending program.
Stated Income Small Commercial Loan or Different Types of Loans in Texas
The first kind of loan a person could apply for is a Stated Income Verified Asset or SIVA loan. This type of loan means a person must verify their assets through a bank statement or via other documentation.
The second type of loan available to a person is a Stated Income Stated Asset or SISA loan. SISA loans usually fall under the Alt-A category and it may have a higher interest rate than traditional lenders. Those who are self-employed often use a SISA loan, because their income tax returns don’t show the actual cash flow available to pay a loan. Some lenders require an applicant to sign a letter which gives permission to the lender to receive a copy of the person’s tax returns from the IRS, in cases of default.
The next type of loan offered is a No Income Verified Asset or NIVA loan. With a NIVA loan, a person does not need to state or verify income, but assets are verified.
No Income No Asset or a NINA loan is a type of reduced documentation loan which requires no income or asset disclosure or verification. However, with a NINA loan, a person’s employment is normally verified and again these loans fall under the Alt-A category and may have a higher interest rate.
A No Doc or ND Loan means no income documentation of any type is required. This type of loan is the most streamlined of all loan types. Businesses may borrow with a No Doc loan, but it may require them to have a personal guarantor. These loans may require a business to come up with a large down payment or significant equity.
No FICO (credit score) loans require the borrower to have assets and income, however no FICO is considered.
Stated Income Small Commercial Loan for businesses is also crucial.
Why Get a Stated Income Loan?
There are many people who are now applying for a “stated income” loan, because applications don’t take as long to process and it results in a speedier approval. Many people who have substantial equity in their property and want buy commercial real estate with a solid down payment, may wish to take out a stated income loan.
You shouldn’t think of these loans as a free pass to get money, because it doesn’t work that way. Lenders won’t knowingly advance money to someone who hasn’t filed income tax returns or claims income they haven’t reported. Why? Because when they lend money to purchase property, the property is used as collateral to secure the loan and with no verifiable means of income, the risk is too great!
If you are self-employed and interested in applying for a stated income loan, please contact a lender in Texas for more information.
Stated Income Small Commercial Loans and other sources: