Commercial Florida Mortgage Lenders With No Income Verification
No income verification Florida mortgage lenders are perfect for investment properties. These no-doc investor loans help investors and business owners in complex situations. This includes real estate investors and the self-employed workers. For most traditional loans want everything but a blood sample. These No Income verification loans streamline the process.
Small Florida business owners and investors utilize small commercial properties to support and operate their businesses. We believe strongly in this type of asset and have developed financing solutions for commercial real estate loans designed specifically to help entrepreneurs achieve their vision of real estate ownership.
We lend on mixed-use, multi-family, retail, office, warehouse, automotive (no gas stations), and look at daycares case by case. Attached is our matrix. In general, you are looking at LTV’s 70% to 75%. No income qualifications are required. No experience is necessary and we don’t have a minimum FICO score but LTV’s will be reduced the lower the score. We do require the property to be in urban and suburban markets. Nothing rural.
No Income Doc Lender on 1-4 Family Investment Properties and Commercial Real Estate
- National Lender
- Loan amounts from 75K to 2 Million on 1-4 Families
- Loan amounts from 100K to 5 Million on Commercial
- No Seasoning or Sourcing of Down Payment Funds
- No DSCR Requirement on 1-4 Families
- Short Term Rentals OK (Airbnb/VRBO)
- Cash Out OK
- Seller Second’s up to 90% LTV
- No Minimum Fico score requirements. LTV’s will be adjusted for low Fico’s
- No Tax Returns, No W-2’s, No Paystub
- Commerical properties lent on…………Mixed Use, Multi Family, Retail, Office, Warehouse, Automotive (No Gas Stations). Think Mom and Pop commercial
- No rural areas
- Fix and Flip Program for 1-4 Family Properties
- Foreign National Options
As Florida Commerical Mortgage Lenders, we have options for a variety of commercial properties, including:
- Retial
- Multifamily
- Hotel
- Mixed Use
- Warehouses
- Office Buildings
- Retail Stores
- Self-Storage Buildings
- Automotive Repair Shops
From a commercial Florida mortgage lender’s perspective, commercial buildings with more general use capacity like retail, warehouse or office space are easier to finance than properties built for a specific purpose (i.e., bowling alley, bank, or manufacturing plant) because they have an inherently lower risk due to higher market demand from investors. Florida mortgage lenders often avoid financing specific use properties or require a lower LTV (e.g., higher downpayment) on them to offset their higher risk profile.
At Florida Commerical Mortgage Lenders, we provide loans for a wide variety of commercial properties, including:
While we do provide investment property financing for up to $5 million on small-balance commercial real estate buildings, most of our commercial real estate loans fall under $2 million in value. These smaller loans are much easier to approve and close in comparison to “institutional” loans for larger properties, so they’re a great place to start if you’re a broker who hasn’t done commercial real estate loans in the past.
Starting with smaller, easier-to-approve buildings will help you establish your commercial mortgage lending practice. Once you’ve completed a few commercial loan deals, you can quickly move on to larger properties to generate more revenue per deal.
Financing for Florida commercial real estate.
We know small business owners and investors only have a short runway to get their vision up and running. Our uncomplicated, asset-based commercial loans are designed to help you give them the Florida commercial mortgage Lenders they need to acquire or refinance properties quickly and easily.
Less paperwork, flexible terms, and the freedom to look beyond a borrower’s income allow us to offer investors funding options beyond what’s traditionally available to them. Whether your client needs a loan for a new property or a cash-out refinance, our commercial loan terms will make it simple to qualify.
Alternative Income Qualifying Options
Our simple, flexible loan solutions make it easy for investors to get the financing they need so they can focus on bringing their vision to life.
Our FlexTerm Loan has many benefits for commercial real estate investors and small business owners:
- A simple financing solution on a purchase or cash-out refinance.
- Interest-only payments up to 10 years.
- The flexibility to remain in the loan for up to 30 years with no balloon payment.
- Lower monthly payments than a hard money loan.
Avoid Fallout with Commercial Florida Mortgage Lenders
First the good news. Sixty-five (65) percent of commercial real estate loans are approved. That’s the good news.
Unfortunately, the bad news for commercial real estate investors and brokers is, of course, that 35-percent of commercial real estate loans get rejected for various reasons.
So, what are the most common reasons why commercial real estate loans fail? A 2017 Florida Commerical lenders survey conducted by the National Association of REALTORS among a random sample of realtors with an interest in commercial Florida real estate loans found that:
- 59 percent of commercial real estate loans fall out during the loan underwriting process. Our experience shows this happens often because the close is contingent upon the borrower fulfilling specific conditions for approval (i.e., downpayment, documentation, etc.)
- Another 14-percent get rejected because financing isn’t available. For example, lenders may change the terms of the loan (i.e., a lower LTV), or withdraw it all together if the borrower’s financials or credit don’t prove out during the underwriting process.
- Other reasons account for 12-percent of the fallout rate for commercial real estate loans.
- Another 15 percent commercial real estate loans fallout because of the property’s appraised value. The primary reasons for this include insufficient net operating income (NOI), economic obsolescence (when the value of a property decreases due to external factors in the local area) or deteriorated financials (a sign that the borrower is experiencing some form of financial stress or trouble).
Of course, many of these factors aren’t unique to commercial real estate loans, except for business-related issues like NOI, economic obsolescence, and deteriorated financials.
How Net Operating Income Affects the Fallout of Small Balance Commercial Real Estate Loans
Florida residential investment and small balance commercial real estate investors include many self-employed investors and small business owners who often write off expenses against their income to lower their tax liability. While perfectly legal, this can affect a borrower’s ability to qualify with many Florida commercial mortgage lenders.
Although an investor may look cash poor, his or her investment in commercial property may indeed provide a long-term reward. A low net operating income is typical for residential investment properties that often generate lower rental incomes in the short term with a high amount of capital appreciation over time. So while the smart investor will try to limit their tax liability by writing off expenses, the practice may limit their access to the financing needed to acquire new properties. It’s not uncommon for small businesses to have similar low net operating incomes for the same reason.
Banks and wholesale lenders who offer mortgages backed by Government-Sponsored Enterprises like Fannie May or Freddie Mac must follow strict underwriting guidelines that make it difficult for W-2 employees, self-employed investors and small business owners to qualify for GSE-backed loans. Since 59-percent of failed loans occur during the underwriting process, such borrowers may find it easier to work with direct portfolio lenders who have the flexibility to “bend the rules” in their favor by offering a lower LTV to compensate for a lower net operating income.
How to Avoid Fallout from Financial Issues
Brokers who offer commercial real estate loans don’t want to waste their time and alienate clients by making promises they can’t keep. Avoiding this requires them to ascertain the probability of closing commercial real estate loans before they invest their time in submitting the loan for underwriting.
Some commercial brokers have a knack for reviewing business financial statements and spotting trouble. Less experienced brokers often turn to their financing partner for a quick assessment of the probability to close. A smart partner who understands the pitfalls related to closing small balance commercial real estate loans should be able to ascertain the probability to close within a few minutes.
Contingency Planning for Commercial Real Estate Loans
Of course, experienced brokers will always have a contingency plan in place for funding their fallout. Options can include alternative non-bank lenders that enable the borrower to acquire the property through short-term financing with a longer-term strategy to help them refinance later with more favorable terms. Through this approach, brokers gain the reputation as trusted advisors who help their clients overcome business challenges through the creative use of real estate financing solutions.
Indeed, having a secondary source of funding for the 35-percent of commercial real estate loans that fail is a good business strategy for brokers, particularly if that lender can provide the flexibility to meet the unique needs of their clients. After all, brokers are responsible for finding the “right loan” for each borrower, even if the solution involves an untraditional path.
