Stated Loans

Could someone give me an idea (typical financing percentage 8%/10%?) of a stated only loan at 20% and 10% down? I wanted to know the difference in interest rates…? I have been a Realtor for a little over a year and well, starting out you generate NOTHING. LOL. So my loan would have to be stated or no doc i believe. I also have a 720 credit score and a 690 credit score, and my wife’s credit blows mine away so i dont think that will be a problem.
I am finally selling my rental house in Monterey and will be making other investments in other places (Other location, just commercial properties). I am just trying to figure out cash flow. I would like to make at LEAST $8,000 a month with 55% expenses ratio and mortgage payments. Am i dreaming? I have a good amount of money after the sale of the house to reinvest and would like to leverage as much as possibe…

Am i in the ‘investors’ frame of mind with this plan? Would any body do anything different?

Sorry for all the questions, we finnaly get the house back after the Sheriff comes today to evict the non payers… Now that we’re getting rolling I AM GETTING REALLY COLD FEET on investing… When it was all on paper and I didnt have to make a move, i was Joe Cool. Now I feel like that little nervous cartoon chicken running around saying “the sky is falling”… LOL

I just need to know it’s do-able. Thank you all!

Thanks in advance for everything, especially the loan rates!!!

Rates are going to vary depending on:

  1. Type of property.
  2. Loan Amount.
  3. Location of property.

There is a wide spread between 7% and 9.5% depending on the above mentioned factors.

Congradulation on being a realtor.You can go full doc with that score to A paper lender provided Debt to income ration. Difference is .25 point difference, and some time not at all. 6.5 to 7% based on your fico

How about stated? My proof of income is going to be way less that impressive :slight_smile:


Full Doc= Dcumentation & verification of income and assets,tax returns and bank statements on 1003( Application)

Siva -Stated income/ verified assets= no documentation of income, but lender will verify a 2 year history of the business through a letter from your CPA stating that you have been filing taxes as self-employed for at least 2 years, or they will accept a business license. You will have to document where your down payment and closing costs are coming from.

Sisa -Stated income/ stated assets= Same as above, but no documentation of assets required

No Ratio= No disclosure of income, lender still verifies 2 year history of your business. no documentation of assets, but they are stated on the loan application

Nina- No doc (no income/ no assets)= essentially a blank loan application. Lender does not verify assets, income, or history of business. Usually this is done for a borrower who has not been in business for at least 2 years or cannot document it.

The less documentation you provide, the higher the rate you will pay on the mortgage
.If you want to get this wrap up… let me know it only take an hour.

Im a Realtor.
Is there some type of ratio or equation/formula they use to see if the property is worth financing? Like a Debt to income ratio but, on the property itself…?

What exactly are you trying to do, buy a residental property or commercial property or refinance a single family resident. A little confused…With out exactly knowning your goal and what you think to accomplish , I would be giving you the wrong info. Hope to hear from you soon so I can Help

I’m sorry - you’re right, i was very broad.
I’m trying to buy a commercial property. It will be my first and i want to have all my ducks in a row.
Thank you!!

What type of commercial property. multi family, office , mobile home park, a strip mall, mixed use… ?Where is property located?

Net operating income divide by selling asking price equal capitalization Rate. if net operating income is 22,000 divide by 1,500,000 is equal to cap rate of 1%. Cap rate of 10 or bettter buy. 5 or less = rent is too low, the expense to high , or property is out of line. 7 or less is negative cash flow. Look at the real book. gross rent multipler =sale price divide by the gross rent. The lower the better. If the multipler is 10 or above the price is too high.

There are stated rates as low as 6.750%, but you have not provided enough information to give an accurate estimate. In commercial we underwrite the property more than the borrower.

On commercial property average lenders max out at 90% LTV.

I can do an 85/5/10 stated, but not a straight up 90. Who is doing that?