Financing for multifamily building loans enable investors to accumulate a larger portfolio of apartments. Although, getting approved for a commercial property loan is quite challenging for some investors. Fortunately, Direct Apartment Lenders offers no tax return apartment financing for investors who might be unable to qualify with documented income.

Financing Hurdles That Apartment Investors Encounter

When seeking funding for an apartment building, an investor may face a myriad of financial challenges.  Quite often, investors who are just starting out may check with several banks to inquire about a commercial building loan.  Without a superb credit score, a generous down payment and recent tax returns, banks are unlikely to fund an apartment loan.

Moreover, applications that get submitted for a commercial mortgage loan approval from several banks will create multiple inquiries that can lower an investor’s credit score. Lower credit scores and limited income or no tax returns can complicate an investor’s path toward commercial funding success.

 Unfortunately, an investor may also be misguided by loan brokers and mortgage lenders who are unable to fund challenging commercial apartment loans.

Stated Income Apartment Loans

Investors who are unable to secure a traditional apartment loan might qualify for stated income financing. This type of mortgage loan works best when other details are evident. 

For instance, an apartment building that generates consistently favorable rent rolls from long-term tenants is a huge plus for a mortgage lender. If the scenario reflects a property that has a low loan-to-value and an investor with excellent credit, that could be a deal with reasonable benefits. This might result in a lending opportunity, where an apartment lender accepts the amount of income that an investor states -- at face value.

Hence, stated income for an apartment loan refers to the amount of monthly income that an investor lists on a loan application for a commercial mortgage.

Stated income loans are generally processed much faster than traditional mortgage loans, as a lender will not allocate time and resources toward verifying the income that an investor listed. 

Many lenders who offer stated income loans will require investors to supply personal and business tax returns. Banks are widely known to require some solid financial documentation prior to approving a commercial mortgage loan. 

We offer outstanding solutions within the marketplace for apartment loans, where an investor might qualify for financing programs with stated income and no business tax returns or no personal tax returns.    

Property-Based Financing

Nearly every deal that an investor wants to buy appears to have some potential for improvement. Among the many gems that commercial properties have versus residential properties revolves around an assortment of ways to generate more money from the subject property.

Additional income is great because it increases the value of the asset.

While an investor might have some lucrative plans to exponentially generate more revenue from an apartment building, a mortgage lender will need to understand the current debt service ratio for a commercial property. 

In some opportunities an apartment lender may be able to consider the after-repair value and pre-leases for additions or converted apartment units.

Working with a mortgage lender that extends financing, which is based on the quality, condition, value and earnings from a commercial property is an excellent way to secure an apartment loan with less concern about the investor’s taxable income.  

For property-based financing, investors should speak with apartment building lenders who offer aggressive commercial mortgage loans.

Non-Bank Apartment Lender

For commercial mortgage loans that require alternative underwriting guidelines, a non-bank apartment lender is a valuable resource. Applying online for financing with a non-bank apartment lender is a task that an investor can perform from home or work. This is a convenient benefit that eliminates the need for an investor to drive to a local credit union or to a regional bank.

 Traditional banks provide financing that works for a limited number of investors. Essentially, bankers are looking for a needle in a haystack to minimize the risk of issuing a risk loan.  

 Instead of the worry that would be associated with lending money from a bank’s depositors, non-bank apartment lenders have pools of money that are earmarked for an assortment of commercial mortgage loans.

 Summary

 Apartment financing is available for qualified investors without tax returns. Knowing where to apply for a commercial mortgage loan is important for an investor who needs non-traditional underwriting guidelines. 

 Knowledgeable apartment lenders can speak with an investor about the requirements to secure a loan approval. 

 Speaking with a licensed apartment lending firm can save time and money for borrowers who are seeking competitive terms for a mortgage loan to buy a commercial apartment building. 

Our focus on the apartment lending niche enables us to explore the best mortgage loans to finance commercial properties.  We employ friendly and courteous mortgage professionals who are driven to provide helpful insight for apartment investors.

Contact Direct Apartment Lenders today for more information about mortgage loans with reduced financial documentation.