There are many different types of commercial loans, which can usually be tailored to meet specific needs. Here is a list of some of the popular loan programs we offer to our clients.
Owner Occupied Commercial Loans are available for a business owner to acquire an office, warehouse, medical/dental, retail, or mixed use building for their business needs.
Commercial Bridge Loans are a specially designed form of interim financing that is primarily used when a borrower is planning to sell a property quickly or refinance within the near future.
Commercial Real Estate Loans are designed for the small commercial building investor. Properties include multi-tenant office, retail, warehouse, and industrial buildings.
Commercial Mortgages are investor loans that offer many options for the owners, or purchasers, of larger commercial properties such as offices, industrial, retail, warehouse, manufacturing, R&D, apartments and hotels.
Multi-Family, Apartment and Student Housing Loans are available for those wanting to acquire housing apartments of 5 units and more, large apartment complexes or student specific housing.
Hospitality & Hotel Loans are available for those wanting to acquire an existing profitable operating hotel. Loans are also available for new hotel construction, providing that it is in a desirable location with a well-known flag.
Condo Conversion Loans are a popular ways to invest in real estate. Transforming rental properties into condos allows buyers to generate considerable cash-on-cash returns relatively quickly, which also allows prior apartment owners to cash out at the top of the market.
Small Business Loan are guaranteed by the Small Business Administration, and must be given approval. They are for the benefit of those wanting to purchase professional facilities, or to expand the facilities which they already have.
General Investment property loans come in all types and terms, depending on the property being financed. We invite you to contact us in order to discuss your available options in greater detail.
Stated Income Loan Vs. Full Documentation Loan
The main difference between a stated income and a full documentation mortgage is simply how your gross monthly income is determined and/or verified during the application process.
Stated Income Loans
Stated Income Loans do not require verification like traditional full documentation loans do. In this type of loan the individual self-reports their income. However, during the underwriting process a mortgage lender is likely to consider what is a reasonable income would be in relation to employment type. For example, if an individual is a public school teacher, but lists an income far beyond what a public schoolteacher is typically compensated, the underwriter may reject the application. In other words, a stated income should fall within a somewhat standard range for the type of work or company providing the income. A stated income loan may be the best option for self-employed and wage earner borrowers who, for one reason or another, are not able to provide standard verification.
Essentially with this type of loan, the lender agrees to take your word for it. Since this approach may carry higher risks for the lender, it is reasonable to assume that your interest rate may be higher. Keep in mind that all income, assets and liabilities still need to be disclosed, even though they do not require verification.
Pros:
May be faster
Provides a solution for those who cannot verify income
Less paperwork
Cons:
Possibly a higher interest rate
May be more difficult to get approval
Full Documentation Loan
This type of loan is often referred to in the industry by the shortened name of “full doc”. Full documentation loans require income verification and are available for both the self-employed and traditional wage earner borrower. Here is a list of documents and forms commonly used in the mortgage industry to verify income, asset and liability.
Standard Proof of Earnings:
W-2 form
Recent pay stub(s)
Tax returns for the past two years
Self-Employed Proof of Earnings:
Profit and loss statements
Tax returns for current year and previous two years
Examples of Additional Income: (examples)
Social Security
Overtime Bonus
Commission
Interest Income
Veteran's Benefits
Alimony or Child Support
Asset Verification:
Address of your Bank Branch
Bank Account Numbers
Checking and savings account statements for the previous 2-3 months
Savings Bonds, Stocks or Investments and their approximate market values
Copies of titles to any motor vehicles that are paid in full
Debt Information:
Credit Card Bills for the past few billing periods
Other Consumer Debt
-Car Loans
-Furniture Loans
-Student Loans
-Other Personal and Cosigned Installment Loans including creditor information.
-Evidence of mortgage and/or rental payments
-Copies of alimony or child support
Information regarding Desired Purchase
-Copy of the Ratified Purchase Contract
-Proof you are committed to the purchase
-Canceled deposit
Pros:
Typically offers a lower interest rate
May be easier for qualified applicants to obtain
Cons:
May take longer
More paperwork
