Daily Observations - Stated Income?

Well I found a lender today that was still doing stated commercial loans at what price though.

With Silverhill and Interbay very limited on their exposure to the lending environment, someone or some companies had to pick up the slack of what I personally referred to as quasi-hard money lenders. Those lenders that charge between three and five percent higher than the going rate as well as increased points but not to the extent of 14 to 18% and eight to twelve points as some of the hard money rates I've seen quoted.

They were running between 9 1/2 to 11 1/2% depending if we are able to go full doc or not. if we went stated income we were well into the 10% rate at par to us. But why am I talking about this tonight, the reason is for you to know that there is still a viable alternative in the stated income arena. Expensive yes, but still available.

To go stated income this lender requires that you be self-employed for at least two years. If you can substantiate through proof that you were self-employed for at least the last two years they will allow you to proceed under their stated income program.

Because they are a direct lender they can afford to hold the paper and be selective of the deals they want to look at. Requirements are basically the same as traditional lenders except that they are going to take out a larger percentage from the net operating income for TILC, as well as vacancy and management. Lastly their pre-payments are going to be much stiffer than traditional commercial loans. But the bottom line is if you have a client that is in desperate need for financing this quasi- hard money lender may be your answer.

Please do not deluge me with questions as to who this lender is, just know that there are quasi-hard money lenders that will take a look at stated income under the right circumstances.

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