Commercial Loans

Stated Income For All types of Multifamily, Commercial, Mixed-use, and Industrial Properties is excited to announce the release of a stated income loan product for the real estate investment community. In its effort to provide an edge to investors seeking financing, the bank will no longer require the borrowers’ tax returns for all financing requests. This new program allows the bank to rely on a current personal financial statement and proof of assets, and verification that the debt service on the bank’s loan is at least equal to the Net Operating Income of the property (a debt coverage ratio of no less than 1.00 : 1.00). Also, the maximum loan-to-value will be 60% of the appraisal (or the purchase price, whichever is less). A minimum down payment of 20% is required (allowing for a 20% second loan, the payments of which do not count against the cash flow analysis). This loan product requires full recourse to the borrower, and the rate and margin is increased by 50 basis points over the standard loan pricing grid.

Historically has relied on reviewing the personal tax returns of its borrowers; by underwriting to the strength of an investors’ personal cash flow as illustrated on the tax returns, the bank is able to provide investors with more loan dollars than other banks. On a full documentation basis where tax returns show sufficient income, the bank aggressively lends to a negative cash flow on the property where the Net Operating Income(NOI) is only 70% of the loan payment (most banks require that the NOI is at least 15% greater than the qualifying loan payment). With this stated income program, the cash flow requirements of the property are tightened up and the bank’s loan to value exposure is reduced. now has a commercial and apartment lending solution for borrowers who can’t document sufficient personal income to offset the lack of positive cash flow on a purchase transaction. Clients who have the following characteristics could benefit from this program:
• Debt to Income (DTI) ratios are greater than 50%
• Filed taxes for the most recent tax year are not available
• Year-to date profit and loss statement is not available
• Good liquidity and net worth, but low reported taxable income

In order to more accurately size up your loan request, please provide the following information via email to
1. Brief cover letter explaining transaction
2. Property description
3. Current rent roll
4. YTD & previous 2 years operating statements on subject property

1. Complete 1003/Current personal financial statement(s)
2. Broker Submission Form
3. Credit report(s) for borrower(s)
4. Key pages of personal taxes (first 2 pages of 1040’s along with any schedules and statements)
5. Key pages of corporate taxes (first page and any statements)

To discuss how this program can benefit you and your clients, call
Joseph Choi, 1-888-417-5598 ext. 1#