Entrepreneurs provide a variety of helpful products and services. While a business owner might be good at selling certain items, acquiring money for real estate could be a far more challenging task. Direct Apartment Lenders offers nationwide apartment loans for self-employed borrowers.

Why is Financing More Difficult to Obtain for Self-Employed Individuals?

Unlike a traditional full-time job, where an employee’s salary can increase year-after-year, earnings for an entrepreneur or for a small business may be inconsistent.

When an underwriter notices a year of stellar earnings that are followed by a lackluster period, a decision might be made that an unacceptable degree of risk may be imminent. 

It is possible that a business thrives every other year, and some underwriters may request a year-to-date profit and loss statement to cover a 30-month period or greater (two years of tax returns and a YTD P&L).

Individuals with excellent credit, verifiable earnings and solid financials may be able to obtain an apartment loan from a local bank.

A mortgage loan approval for an apartment building might be more difficult to secure from a bank, when the applicant has less than a 740-credit score and limited taxable earnings.

Mortgage Loans for Self-Employed Applicants Without Tax Returns  

Commercial mortgage lenders often require personal tax returns from an applicant who wants to purchase an apartment complex or to refinance an income-producing property.

Self-employed borrowers who write-off a lot of business expenses or who have not filed personal or business tax returns for the past few years may be concerned about meeting the income requirements for an apartment loan.

Non-bank financing entities typically offer aggressive mortgage loans for commercial properties that meet certain underwriting standards.

We have apartment loan programs for borrowers that do not require personal tax returns or business tax returns.

This is a valuable niche that we offer for investors with a fairly good credit score.

So, why does Direct Apartment Lenders offer loans for commercial properties without requesting a borrower’s tax returns?

The reason might confuse many local bankers, however, the reason makes a lot of sense. 

Our greatest concern is the revenue that flows through the property. If a property meets our debt service requirements, an opportunity for an apartment loan might exist. 

Stated Income Apartment Loan for Self-Employed Borrowers  

A self-employed borrower who operates a business that generates daily cash may not have verifiable bank deposits to substantiate the earnings. Some self-employed borrowers may earn royalties or commission income that is undocumented or inconsistent. 

This could be a red flag with many mortgage lending firms.

However, we have some non-traditional loan programs that are excellent for self-employed borrowers. 

A stated income apartment loan is ideal for an investor who is buying or refinancing a commercial property with a strong monthly rent roll.

We offer fixed-rate mortgage loans and adjustable-rate mortgage loans on stated income apartment loans. 

Apartments with five or more units are considered commercial properties. Although, single-family investment properties, duplex rental properties, triplexes and quad rental units might also qualify for our stated income financing program.

For an investor who wants to expand a rental property portfolio, stated income apartment loans can close faster than full documentation loan programs.

Borrowers are encouraged to apply online for our stated income apartment loans.

Offering competitive mortgage rates for apartment buildings has enabled us to fund commercial loans throughout the United States.

We promptly review and underwrite apartment loans within a few days. 

Therefore, an investor will not have to wait for a long period of time to obtain an in-house mortgage decision.  

Applying for an Apartment Loan

Take the next step toward obtaining financing for an apartment building. 

Our knowledgeable loan officers have many years of experience in the apartment lending industry. 

After a request for financing is made, a thorough review is conducted to determine if a lending decision may be made with the initial borrower-submitted information.

Self-employed borrowers who apply for an apartment loan online will also have an opportunity to speak with one of our loan officers.

If a mortgage pre-approval is issued, a loan officer will be able to discuss any of the listed items that are needed to successfully navigate through the underwriting process.

Some items may be needed before a loan commitment is issued to a self-employed borrower, such as a business license from the Secretary of State that reflects the legality of the company and its formation date.

Whether an investor is buying an apartment, refinancing or borrowing against the equity in a commercial property, we offer competitive interest rates.

Direct Apartment Lenders will review each loan submission on a case-by-case basis. 

As a nationwide lender, we welcome applicants throughout the United States to apply for an apartment loan online.

Contact Direct Apartment Lenders today to get more details about financing an income-producing property.