Stated Income Loan Options

Self-Employed Mortgage Help

 

One of the first questions that potential borrowers ask when they call a mortgage company or a bank is, “Do you offer stated income loans?” Although there are a few lenders offering stated income loans, the answer to this question is almost always NO. With stated income loans having all but disappeared in recent years, more and more stated income borrowers are looking to private money lenders and are seeking hard money loans for badly needed credit.

 

Small Business Owners, Entrepreneurs & Mortgages

Sadly, it’s actually the stated income borrowers who are making most of the money churn in the economy, and not the W-2 wage earners. This group of stated income borrowers includes small business owners, realtors, doctors, attorneys, business consultants, and the list goes on. But the irony is it was NOT the stated income loans that got us into the financial crisis, it was the sub-prime loans that were the culprit. Yes the abuses of the house flippers and straw buyers who took out stated income loans were a major contributor to the meltdown of 2008. But this does not mean that stated income loans were bad loans, just that they were badly misused.

 

Until stated income loans are again being offered by banks, stated income borrowers will continue to demand private money loans and hard money loans to tap into badly needed credit. Call us at California Private Money Lenders to explore the options available to small business owners, self-employed individuals, and entrepreneurs for home and commercial lenders options.

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Commercial Loan Solutions

Commercial Loan Coming Due-Replacement Options

According National Real Estate Investor, (NREIOnline.com) an “avalanche” of CMBS loans (commercial mortgage backed securities) are maturing this year, and this number will increase substantially through 2016. If you’re a commercial real estate investor with a loan coming due next year, you may want to get head start on finding replacement financing. Because so many of these CMBS loans are maturing over the next few years, there will be heightened competition for available financing. Much like musical chairs, you better find a seat quickly, before they are all gone!

 

Many commercial real estate investors have taken huge hits to their property values since the pre-crisis days when these loans were originally underwritten. Whether from lower occupancy levels, or market comparables driving values down, values are down substantially in some U.S. cities compared with pre-crisis highs. Don’t be foolish enough to think you can afford to wait to find replacement financing for your commercial loan coming due in the next 12 to 24 months. Because so many maturing loans will be seeking refinances during this short-term window, it is wise to get a head start on your commercial real estate refinance and search for multiple alternatives.

 

Bridge loans, also called commercial hard money loans, are a higher cost alternative to bank loans. For commercial real estate investors who have always sought bank loans, these bridge loans are a sound option when options are scarce. If you have a commercial loan coming due, create as many alternatives for commercial real estate financing over the next several years that you possibly can. Call us today at California Private Money Lenders to discuss your options.

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