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Stated Income Loans for Investment Property

Norada Real Estate Investments is pleased to offer our new Stated-Income Mortgage Loans, available on many of our investment properties.  These loans are available on 1-4 units properties with just a minimum mid FICO score of 650.  You can get up to 70% loan-to-value (LTV) with absolutely no personal income verification.

We offer this as a more cost effective financing solution versus traditional hard money with terms and rates closer to those of institutional  lenders.  This is a great opportunity for investors who are self-employed, have below average credit, or have other personal situations that prevent them from qualifying for more traditional loan products.

Stated income loans allow those who are self-employed or do not have documentation of earned wages to state a wage on the mortgage application and qualify for a mortgage based on that stated income.

The advantages of a stated income loan provide those who qualify with a mortgage based on their stated income.  The borrower does not need to verify income and approval is generally faster than with a traditional mortgage loan.  The disadvantages of this type of loan are that interest rates are usually a little higher and the required down-payments are often higher than with traditional mortgage loans.

The following are the current loan features and terms (subject to change):

OPTION A:

  • Quick closings.
  • W-2 or self-employed.
  • Minimum credit score of 650.
  • Up to 70% loan-to-value (LTV).
  • 30-year fully amortized loans.
  • Minimum loan amount is $100,000.
  • Single-family, duplex, triplex, fourplex, and condos.
  • Seller seconds and gift funds allowed on purchases.
  • 3 or 5 year ARMs available with rates starting at 7.49%.
  • 4 point origination fee.

OPTION B:

  • 7.99% Interest rate (full doc)  -OR-  8.99% Interest rate (stated income).
  • NO credit score requirement.
  • Up to 65% loan-to-value (LTV).
  • 30-year amortization with a five-year balloon payment.
  • Minimum loan amount is $30,000.
  • Single-family, duplex, triplex, and fourplex.
  • Non-owner occupied purchase, cash-out or rate and term refinance.
  • Gift funds allowed on purchases (no seller seconds).
  • NO prepayment penalty.
  • Foreign nationals eligible.
  • Foreclosures and bankruptcies are OK.
  • Loan eligible to close in name of an LLC.
  • Cash-out refinance allowed on non-owners with max LTV of 55%.
  • 6 point origination fee.

Feel free to contact us for more information on this stated-income mortgage loan program and our properties that qualify for this unique financing.


  1. Comment by Frizz
    October 8th at 12:52 pm 

    Hello, I wanted to know are the loans from traditional banks or HML?

  2. Comment by Marco Santarelli
    October 8th at 1:19 pm 

    We have partnered with a private money lender to offer these stated-income loans. They are not selling their loans on the secondary market. They hold their own notes.

    Feel free to call our office for more information, and the properties that qualify for this financing.

  3. Comment by Gerardo
    October 8th at 2:05 pm 

    Hello, what range of interest rates can we expect to see? Let’s say for a $100k loan over 30 years. Thanks, Gerardo

  4. Comment by Marco Santarelli
    October 8th at 2:27 pm 

    Gerardo – The rates under “Option A” currently range from 7.49% to a high of 8.49%. The typical rate on the 30-year fixed is 7.99%.

    (Remember these are not conventional loans — they are stated-income loans for non-owner occupied properties, and you can qualify with a FICO score as low as 650.)

  5. Comment by Gerardo
    October 8th at 2:34 pm 

    Thanks Marco for the quick response.  This information is good to have an idea.  This is my first time exploring to take a loan on a rental property.   Regards, Gerardo

  6. Comment by Shah
    October 10th at 9:35 am 

    Are you able to finance properties in Minnesota?

  7. Comment by Marco Santarelli
    October 10th at 9:46 am 

    Hi Shah — right now these stated-income loans are only available on our investment properties. We hope to be able to make this available to “outside” investors in the future. Thank you!

  8. Comment by Sam
    October 18th at 9:41 am 

    Will this program work for Canadians?

  9. Comment by Marco Santarelli
    October 18th at 9:43 am 

    YES, the second option above will work for Canadians and ALL foreign nationals.  It is not credit score driven.  Feel free to contact us for more information.

  10. Comment by Scott
    February 19th at 3:25 pm 

    Hi, do these programs allow ownership of title in a LLC?

    Thank you,

    Scott

  11. Comment by Marco Santarelli
    February 19th at 3:34 pm 

    Yes Scott – you can hold title in another entity like an LLC. Some loan products require you to close in your name first, then you can immediately transfer the title to the property into your LLC or whatever it may be. Other loan products allows you to close directly in your LLC.

    Feel free to contact us anytime with any questions.

  12. Comment by Scott
    February 19th at 4:07 pm 

    Thanks for the info, Marco. One follow-up clarifying question: If the property is purchased by a LLC, is a separate personal guarantee required as well?

    Thank you,
    Scott

  13. Comment by Marco Santarelli
    February 19th at 4:30 pm 

    No, you do NOT need a personal guarantee if one is not already required before you close. These are known as “non-recourse” loans.

  14. Comment by Tony Casares
    March 20th at 3:34 pm 

    Do you do business in New Mexico?

  15. Comment by Marco Santarelli
    March 22nd at 8:26 pm 

    Hi Tony — If you’re referring to the loans, then some products are available in New Mexico. If you’re referring to investment properties than it is not a state we have open at this time. Maybe later.

  16. Comment by Jose Lopez
    November 2nd at 4:45 pm 

    I see that your loans are only available for your own properties, which have moderate cash flow.

    For the option B stated income loan at 9%, do you still have any properties that would make it
    cashflow positive with that loan ? What would be cash on cash return ?

  17. Comment by Gamal Darwish
    January 20th at 7:22 pm 

    If the properties are sold at 6% cap and you are borrowing the money at 9% interest you will have negative cash flow, in other word you will have to pay out of pocket to keep this property.

  18. Comment by Marco Santarelli
    January 20th at 8:17 pm 

    Hi Gamal — good question. Short answer is it depends on the down-payment and expenses. In general you would need closer to a 30% down-payment to get net positive cash flow on a 6% cap rate property. There’s a give-and-take with these variables.

    Continued success!


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