The stated income loans are the forms of finance that are opted by the people who are self employed. The individuals are required to specify their income while applying for these loans. But, in many instances, it has been observed that the self-employed loan seekers undergo various troubles while specifying their monthly income. The people who are self-employed do not have a fixed monthly income. This makes it difficult for them to apply for it. Similarly, when it comes to commercial property loans, the lenders need several verifications from the borrowers. Financial verification needs property appraisals, down payment, etc.

The troubles arising in both the cases among the loan seekers have facilitated a strict procedure for getting an approval to the loans applied for. These severe methods are mandatorily followed to find out the reliability of the borrowers. Stated income loans consider the credit score of the loan seekers as the first and foremost factor for getting the funds approved. The lenders examine these scores very minutely. To avail these loans, you need to have more and more assets. The more assets you have, the more are your chances of getting the finance approved. However, the commercial property loans consider property assessment as one of the primary activities for loan approval. This process helps the lender to review your property and provide the loan amount according to its market value.

The stated income loan, secondly, takes into account, the monthly income that the self-employed loan seekers make. Within the loan application, you need to fill the amount that you receive per month. No further credentials are required to be submitted in order to support what you specified within the blank. The income that you earn must reach the specified amount that is required to maintain a low debt ratio for availing stated income loan facilities.

To get your commercial property loans approved, the second factor to be determined includes the down payments. As far as the residential property is concerned, the borrowers are required to pay little or negligible amounts. While, in case of the business properties, the down payments are believed to be high enough. Thus, the commercial property loans seekers are accordingly required to make the payment based on which type of property he wants for investing.

Thirdly, for the approval of commercial property loans, Debt Service Coverage Ratio also referred in its abbreviated form DSCR. This is the ratio of the amount that the property in which you invested generates from different rents and other fees and the monthly mortgage payment amount. This helps the financial institution to evaluate the approximate amount that you could pay in return to the borrowed amount. However, the collateral format of payment is also visible as far as the stated income loan is concerned.

Both the types of loans exhibit varied characteristic traits and the eligibility criteria for the loan seekers for their approval are also different. Along with the ones discussed above, there are several other factors that may affect these loans from getting approved that have not been elaborately specified here.