Cash Out Refinance? Try a Stated Income Commercial Real Estate Loan

When you are trying to manage a growing real estate portfolio, you need to be able to count on your financing to support each new move you want to make. That means having access to a variety of loan tools to manage your acquisitions and renovations. One of the key tools in that financial toolbox should be stated income commercial real estate loans, too, because they fulfill a unique niche that no other real estate loan is built to fill.

How Stated Income Loans Are Different

Conventional real estate loans, CMBS loans, and equity financing packages are all based on the cost to purchase and develop an individual property, which makes them useful for many kinds of situations. They are not, however, designed to let you use equity as you need it by moving it from building to building. How do you move equity? That’s simple, with a cash-out refinance.

Cash-out refinancing happens when you are able to refinance a building and put the money toward another purpose. This is not possible with many conventional commercial real estate loans, but it is a standard feature of stated income loans. Since stated income loan values are based on the earning power of the building, they are also designed to more appropriately reflect what your business can afford to pay back, making it easier to tell when it is time for you to think about your next expansion.

Program Parameters

  • Self-employment verification or W-2 needed
  • 600 or higher credit score
  • 65% LTV on warehouses and other commercial properties
  • 70% LTV on 1-4 unit non-owner occupied residential properties
  • 75% LTV on 5+ unit non-owner occupied residential properties

For more information about our stated income commercial real estate loans, all you have to do is contact a PTI Financial Group associate. They are standing by to help you with an application or to answer your questions.