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Financing for Stated Income Apartment Building Loans

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pexels photo 106399Apartment building loans provide access to money that investors need. Whether capital is desired to buy or to refinance a commercial property, flexible lending terms offer an array of benefits for novice investors and for experienced investors, too. Direct Apartment Lenders extends financing for stated income apartment building loans for qualified rental properties.

About Traditional Apartment Lenders

Generally, a local bank is among the first financing sources that an investor considers for an apartment loan. Using enormous marketing budgets, local and regional banks will aggressively compete for multifamily building loans.

Bankers design print advertisements, billboard ads and online promotions to attract commercial loan applicants.

Borrowers who see a variety of banking promotions or yard signs that reflect financing from a local bank may decide to inquire about stated income apartment building loans.

Unfortunately, borrowers often discover that traditional apartment lenders are adverse to risky types of commercial property loans.

Therefore, a borrower who visits a bank to apply for financing on a two-unit apartment building may be required to provide tax returns, liquid assets, rent rolls and leases for the subject property.

Traditional apartment lenders, such as banks and a variety of institutional lenders are largely financing apartment loans with depositor-owned funds, which ultimately results in a very strict underwriting environment.

Without a lot of wiggle room for verified personal income and a company’s financial information, banks routinely reject apartment buildings loans that are often viable deals for commercial property financing.

Working With Direct Lenders for Stated Income Apartment Loans

 Direct Apartment Lenders offer attractive stated income loans for apartment buildings.

Personal reported income is among the top roadblocks toward receiving favorable terms for an apartment building loan. In certain situations, an investor might be purchasing a property with a history of great financial performance, but his tax returns reflect an abundance of write-offs that result in limited taxable earnings. This scenario may compromise a borrower’s ability to personally guarantee the debt.

To minimize a business owner’s exposure to a hefty tax bill, an accountant may advise an entrepreneur to take advantage of any qualified personal and business tax deductions.

However, when applying for an apartment loan, a bank will generally look at the taxable income that a business owner reports to the Internal Revenue Service.

While banks will generally decline commercial property loans without tax returns or personal income details, Direct Apartment Lenders will underwrite the loan based on the income that the property generates -- in relationship to its debt to determine the DSCR (Debt Service Coverage Ratio).

Shown below are some of the benefits of working with a Direct Lender 

Nationwide financing for multifamily properties

In-house underwriting for apartment building loans

Up to 80% LTV/LTC - purchase money

Up to 75% rate & term refinance / cash out refinance

No tax personal returns

No business tax returns

Small balance apartment loans with financing from $100,000 - $2,500,000

6 Months seasoning for cash out refinances

Great apartment interest rates

Fast closings

Investors can receive faster financing decisions when working with Direct Apartment Lenders.   

  

Competitive Terms for Property-Based Financing

While banks are reluctant to review apartment financing without tax returns, some private lending firms and hard money lenders might fund an attractive deal. 

Although, the terms are typically less than desirable with hard money loans. An investor with a substantial amount of equity could be approved for a hard money loan with double-digit interest rates and five points or more. 

Incidentally, the repayment terms are often based on a one-year or a two-year term.

There are better options to consider!

No tax return apartment financing is available for 5/1, 7/1, 10/1 and 30-year fixed-rate terms. 

Longer financing time frames provide more security and stability for commercial property investors.

Applying for Apartment Building Loans Online

Financing multifamily building loans with a non-bank apartment lender online is a prudent approach toward securing a no-hassle mortgage approval. Ideally, an investor should speak with an apartment lending specialist prior to looking for commercial buildings to purchase.

Realtors and property sellers are generally more receptive to buyers who have been pre-approved for an apartment building loan. Experienced investors are also aware of the negotiating power that a solid mortgage pre-approval presents.

Investors are encouraged to submit an application online for a mortgage loan via a licensed apartment lender.Many unlicensed lenders may act as brokers or agents who arrange loans via third party resources.  Investors can save time and work directly with a reputable source for apartment building financing.

Direct Apartment Lenders offers stated income apartment building loans for duplex, triplex, 4-plex and for other multifamily building loans. 

We provide a generous portion of the loan amount that is needed to finance an apartment building loan, as we can lend up to 80 percent of the property’s purchase price.


Contact us today to learn more about our limited documentation programs for commercial building loans.

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