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Commercial Mortgages |
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Knowledge Center Articles |
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Stated Income Apartment Loans Overview
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| Capital Assets,Inc provides competitive
financing for apartment and multifamily properties
through various programs without the requirement of
personal or business tax returns. Borrowers are not
required to sign a 4506-T (authorization to request tax
returns from the IRS), and personal income and personal
debt-to-income (DI ratio) are not verified/calculated.
While tax returns aren't required, the property must
be able to demonstrate the ability to service the debt (DSCR)
at a specific loan amount and the sponsor(s) must meet
minimum financial capacity and credit requirements.
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No personal tax returns
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No business tax returns
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No 4506-T
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No personal debt-to-income analysis
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Stated Income Apartment Loans Subject Property Document
Requirements
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The only true stated income apartment loan where no
documentation is required is a hard equity loan where
the value of the property is considered the primary
source of repayment. For all other loan programs that
are considered "stated income," the subject property's
net operating income is considered the source of
repayment for the loan - not the individual's income and
thus the lack of personal income document requirements.
The lender will look to verify the property's ability
to service the new loan payments by obtaining the
following documents for the subject property.
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Two most recent years income and expense statements
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Year to date income and expense statement
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Capital improvements summary to determine which
expenses are considered capital and non-recurring
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Current rent roll
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Sampling of leases
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Tax bill
- Appraisal
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Stated Income Apartment Loans Sponsor Document
Requirements
For loan programs that don't require personal tax
returns or other documents that verify a sponsor's
personal income, as part of the lender's due diligence
the underwriter will require certain documents from the
sponsors or key principals.
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Personal financial statement
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Schedule of real estate owned
- Resume or narrative describing sponsors
experience related to multifamily housing
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Bank statements to verify liquidity
- Credit report
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A personal financial statement is required to verify
the sponsor has the financial capacity to meet the
lender's minimum liquidity and net worth requirements
(which most lenders have). The lender is also looking at
a sponsor's contingent liabilities and if any of their
other properties have a negative cash flow. If the
sponsor has a negatively cash flowing property, the
lender may require the sponsor to provide tax returns to
demonstrate the sponsor can adequately supplement the
property's income to service the debt - thereby avoiding
a potential future default.
While stated income apartment loans don't have
personal income document requirements, the subject
property's income is verified through income and expense
statements. Further, a sponsor can expect the lender to
require ongoing financial statement reporting
requirements. Either quarterly or annually, the lender
will require a rent roll and current income and expense
statements for the subject property. |
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Capital Assets,Inc Stated Income Apartment
Loan Options
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| Capital Assets,Inc provides apartment
loans for borrowers without the requirement of personal
and business tax returns under several different program
options, including, some of our
Banc Series,
Fannie Mae and
Conduit apartment
loan programs.
Contact a Capital Assets,Inc Apartment Loan Specialist at
1-630-454-7400 to discuss your specific needs and see if
we can customize a program to meet your individual needs
and constraints. Or request a custom quote and your
assigned loan specialist will contact you with available
apartment financing options.
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| Apartment loan availability --
including LTV, DSCR, and loan size -- may vary depending
on property location, economic conditions, exposure, and
other variables that may negatively influence risk. Loan
programs and program guidelines are subject to change.
Information provided is not an offer to make a loan and
should be used for informational purposes only. Meeting
the minimum program eligibility requirements doesn't
automatically qualify you for a loan. |
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