Montclair, NJ Stated Income Loan FAQS

There is often a wide gap between traditional funding channels and the benefits of commercial real estate financing. Our offices receive emails on a regular basis, asking us to clear up how Montclair, NJ stated income loans work for commercial properties. In an attempt to make things less confusing, we have put together a list of our most frequently asked questions about Montclair, NJ stated income loans.

How are Montclair, NJ stated income loans different from bank loans?

This is perhaps the most popular question we receive, multiple times a week. The difference is simple. Banks offer loans to people who can provide proof of salary, even if they are self-employed. Commercial real estate investors in Montclair, NJ often rely on property sales and rent for revenue. Property sales do not happen on Friday, every two weeks, and tenants do not issue corporate checks. Revenue comes from various sources, instead of from an employer or parent company, which does not meet the requirements of traditional lending institutions. Montclair, NJ stated income loans sidestep this requirement, so commercial real estate investors can get the funding they need for property transactions and projects.

So just a statement of income is all that’s needed? What if people lie about their revenue?

Montclair, NJ stated income loans have checks and balances. One of the biggest myths perpetuated by traditional lenders is that Montclair, NJ stated income loans allow people to claim whatever they want in order to get funding. The truth is that stated income loans require more than just a letter claiming, “Hey, I’m a millionaire! Trust me!” Montclair, NJ stated income loans require bank statements and the most recent tax filings to support revenue claims.

Are there other advantages to stated income loans in Montclair, NJ?

Unlike the internal limitations and bureaucracy of traditional lending channels, stated income loans can be arranged quickly, efficiently, and meet the needs of commercial real estate investors in the Montclair area. Stated income loans can also be used for a variety of purposes. Commercial real estate investors can use stated income loans for everything from acquisitions and renovations, to making improvements on existing properties and debt consolidation.

If you want to cut through the red tape of traditional lending institutions, and get funding tailored to your needs, contact The Capital Lenders. We will work with you to create a solution to help you reach your goals, without the prohibitively high requirements of traditional channels.