Program Highlights Include:
Stated Income - Stated Asset:
Tax returns are not required under this form of funding. The income is
merely stated by the borrower on
the application form. It must be reasonable for the type employment or
business but it does not have to
be verified.
Loan Amounts:
Loans to $400,000
Loans to $1,000,000
(Loans over $400,000 may require special income
documentation and/or exception)
Loan Types and Terms:
Purchase money for new business acquisition and refinances of existing
business are allowed. The general amortization terms allow for 15 and 20
years; fixed or lower rate adjustable rate mortgages are available.
Lending in the Name of Corporations, Trusts or LLC:
Typically, loans are only allowed in individual names. The
Non-Conforming Commercial Funding sources
do allow for loans in the name of corporations, trusts, and limited
partnerships.
Seller Seconds to 90% Combined Loan-To-Value (CLTV):
Conforming commercial funding will generally allow for the seller in a
purchase money transaction to carry a second lien. As a general rule
they will not allow the loan to value (LTV) and CLTV (all
loans against the property) to exceed 80% LTV. The sources associated
with Vision Mortgage Company, Ltd. allow the seller to participate in
the financing to as much as 90% CLTV. This means that
financing could be set up, for example, as 65% first lien funding and 25% second lien
funding. The borrower would have a 10% down payment.
Gifts of Equity:
A gift of equity in commercial transaction can help facilitate sale of
businesses within family members. Suppose that an individual owns an
automotive repair shop. If that person were ready to retire but did not
want to sell the business to just anyone, he could sell it to his son
and the normal down payment could come in the form of a gift, therein a
gift of equity.
No Employment Seasoning:
There no minimum length of employment associated with this stated income
product. Conforming commercial funding would generally require a
two-year history of employment before it could be considered qualified
income.
No IRS 4506 Requirements:
This is a form that allows the lender to verify or otherwise
substantiate (through the IRS) the income that has been placed on the
application form. Some stated income investors require this form be
signed. Our source does not require a 4506 form.
Unlimited Cash-Out Refinance:
There is no maximum limit to the amount of cash that may be withdrawn
from a project. The only limitation would be within the confines overall loan to value.
Inherited Properties with Cash-Out:
Businesses that are inherited sometimes require cash infusions to take
the business to a increased level of sales or production. Conforming
lenders may require a ownership seasoning period before loans will be
allowed. The Vision Mortgage Company, Ltd. sources allow for immediate
cash-out scenarios (within the scope of the program parameters and loan
to value limitations).
Blanket Mortgages:
Conforming lenders will generally want to structure a single loan for
each address or legal description. The Vision Mortgage Company, Ltd.
sources allow loans to cover adjacent properties with one loan. This
procedure would allow for the economies of scale that surround having a
single appraisal, environmental study, and other similar required
documentation.
Property Types Include:
Retail, Offices, Warehouses, Self-Storage
Five or More Units (i.e. Apartments)
Mixed Use Commercial Properties
Restaurants, Taverns, Hotels, Motels
Special Purpose/Unique Properties
Credit, Income, and Other Challenges
Bankruptcy or Foreclosure
Liens, Judgments, Collections (may be waived if not on title)
Cross-Collateralization |
