Limited Documentation Commercial Mortgage Loans - No Doc Alternative

Sept. 26, 2013 - PRLog -- The nationwide changes in lending guidelines has made it difficult for self employed borrowers and small business owners to obtain commercial financing.   "But for those in New Jersey we may be able to help" says  Robert Bornstein, Broker (888-341-8840 ext 1).  There are mortgage loan programs available for small balance commercial on many types of properties.  Including: Mixed-use, multi-family, motels, Office, Retail Strip Centers, Self-Storage, Apartments, Day Care Facilities, Warehouse properties, Bed and Breakfast, Light Industrial, Auto Repair (with some restrictions), camp grounds, funeral homes and more.

Question:  What’s the difference between this program and those typically offered by your bank?   Most banks only do Full Documentation loans and deeply analyze the borrower, the financials and the property.  This would include reviewing tax returns (both business & personal for the past 3 years), financial statements, credit reports etc.  There are usually very strict guidelines on what may be approved.

While certainly not a true No Doc loan, the programs we have are closer to Stated Income mortgages and underwriting is based more on common sense.  I would call them reduced doc or limited documentation mortgages.  You will need to provide some financial documents but  rather than only looking at the bottom line, those docs may be reviewed in a more “realistic” sense.   Your “story” matters.  Credit score requirements are very flexible, especially with good explanations.  What you will need is ample equity.  Whether that be in down-payment for purchase or for a cash-out refinance.  Typically the maximum loan to value is in the 60%-70% range depending on the property type and total scenario.

Another advantage for borrowers is the term available.  Many banks only offer balloon financing and short term adjustable rates.  The programs we offer have terms of up to 25+ years w/ fixed rate options.  While rates are higher than bank financing  they typically are lower than hard money loans etc.    This specific program has loan limits of $50,000 - $500,000 but we do have similar products for higher amounts.

Not all property types are permitted.  Some restrictions include: gas stations, raw land, assisted living facilities or any kind of rehab loan.  This is definitely not a fix and flip or development program.

With any questions or scenarios call Robert Bornstein at 1-888-341-8840 ext 1.  Or visit his web site at :  http://www.robertbornstein.com   then click on the commercial mortgage link.  There is also a link for residential mortgages which will take you to a site on Stated Income Mortgage loans for primary residences and true 2^nd homes.

123 Commercial is the department of 123 Realtors which handles commercial properties in New Jersey.  Robert Bornstein is a NJ Licensed Real Estate Broker