Just the thought of getting construction loans for a new home can be pretty exciting. However, once the search begins, things become a lot overwhelming. First, you have to start researching the listings available on the internet and then book an appointment with the real estate agent to check out the property in person. But once you have made a few visits, you will realize that house hunting is full of disappointments and the high price that is not justified based on the amenities you will get with the property. It is vital to understand that the current marketplace has properties that are ready to move in. But locating the perfect property can eventually make you feel like a tiring job. Besides, there are multiple things we have to remember to guarantee that you are finding the right deal.
Not to mention you have to stay prepared with the funds to ensure the process can be completed in a short time. For this, you must have contact with commercial real estate lenders in Florida. It can be beneficial as this will ensure that you can acquire the necessary funding quickly. When you take proper measures and stay up to date with the required details, sure things will get easier. However, given the complicated process associated with house hunting, most homeowners prefer building a home as it is an exciting opportunity to personalize the space. With the increase in demand for construction projects, more and more lenders are providing stated income loans in Florida to help the homeowners complete the construction project smoothly.
Stated income loan- What is it?
Before you get a stated income loan in Florida, it is essential to understand a few things about it. In the past, the stated income mortgage was a home loan that did not require any documentation or verification. The lenders just needed the borrower’s stated income to provide the necessary funding, but they stopped issuing stated income loans given the risk associated with this process. In the current scenario, the borrowers cannot get the home loan without showcasing their ability to repay it on time. This means the borrowers are required to submit proper documentation. There is no need for tax returns for self-employed borrowers. Contact commercial real estate lenders in Florida will inform you about the required documents and other assistance. So, make sure to enquire about things in advance.
Stated income loans or construction loans- What are the benefits?
No doubt, having an entire budget for a construction project readily available is not possible. In such instances opting for stated income or construction loans can be extremely helpful to complete the renovation or construction of the property smoothly. Check out the benefits one can expect to get with construction loans or stated income loans.
Better flexibility and total control
In contrast to renovated properties, the construction is done right from scratch. But such a process requires excellent expertise. When thinking of managing, overseeing, and facilitating the project, one has to pay meticulous attention to detail for a seamless transition. Unlike the other property purchasing process, the construction project provides the property owners complete control over the aesthetics and design. Based on the requirement, you can customize the features of your new home to a certain extent for matching preferences and needs without making any substance or compromises. Further, the new construction provides excellent flexibility and freedom to recreate the home much better than the home buying option. But given the level of the project, you will require assistance from an excellent commercial real estate lender in Florida to get the necessary funding.
Constant engagement
The construction project means that the buyer is entirely involved in the project. Everything will be taken care of, from drawing the first blueprint to completing the touches on the home-like appliances. This provides a rare luxury of being engaged in every step of the project and ensuring that things are done according to your requirement. Also, it will help you keep a tap on the overall budget and the timeline required for completing the project.
Compliance made easy
It’s pretty easy to handle the regulatory compliance concerns when taking a construction project. Florida already has multiple rules that are enforced by the local authorities. This is because it is more practical to plan well in advance to accommodate all the building codes and regulations and complete the entire project design during the project planning phase or even before breaking the ground for your new home.
Avoid money traps
By purchasing a pre-existing home, you are inheriting all the problems with the property. The house might require an entire roof replacement or HVAC system upgrade. The list of the expenses that can be associated with the renovation project is relatively high. It can quickly be added to a substantial amount. Thus the purchase here will be more when it comes to the monthly bills.
Further, as the older homes are less energy efficient, you have to change the windows and appliances to make them ready to move in. The old houses are loaded with problems that are overlooked during inspections. Thus costing a huge amount in the long run.
However, taking a construction project means you will do everything yourself and get things new and fresh. This allows you to take control of the construction project and carry out items to suit your requirement. Besides, even when you use stated income loans in Florida for your construction project, you will have the satisfaction that the money is used well for the property, and you are getting a perfect fit for your requirement.
Qualifying for stated income loans
When you search for commercial real estate lenders in Florida, you will find multiple options to get a loan amount. However, it is essential to understand specific requirements you have to fulfill to get the loan amount. Having an idea about things will ensure you avoid any hassle later.
Commercial real estate lenders in Florida who provide stated income mortgages do not qualify the borrowers easily. The borrowers need to have a good credit score, huge down payment, and cash reserves. The stated income loans are generally based on the property’s equity position, which means that the more amount the borrower will put down, the easier it will be to acquire the funding. Generally, the lender will ask to bring forward a 30% down payment more than the conventional loan.
Besides, the lender will also verify the employment of the borrower. The applicant must specify his monthly gross income assets document and bank statement for the lender. It will help check if the borrower has the money to make the payment on time. You must know that the interest rate will be a lot higher, just like the bank statement loans here. So it would help if you were prepared in advance.
Requirements for stated income loans
Check out the basic requirements for stated income loans in Florida.
• The borrower must be self-employed for the last two years or more
• A minimum of 10% down payment is required for the purchase or refinancing. This means the borrower can only get 90% of the home’s value.
• The borrower is asked to provide 12 to 24 months of bank statement
• The lender might ask for tax returns. However, they still use the bank statements for qualification
• Requirement of good credit score for stated income loans in Florida. Remember, when you have a higher credit score, and then you will be asked to pay a lower down payment and avail other benefits
• In case you previously had bankruptcy or foreclosure issue, then the lenders might ask you to pay a higher down payment
You must keep yourself prepared with all the required documentation to ease out the process and get the funding in a short time. However, you must research well to find the best commercial real estate lenders in Florida for the job. Researching is the key to identifying the best and getting a good deal.
Conclusion
There are numerous benefits of stated income loans. However, it is essential to know that finding good commercial real estate lenders in Florida can be challenging, given the number of options available. Besides, when you don’t have a good idea, you might end up making a wrong decision. Thus it will be better to take professional assistance. Here you can contact Private Capital Investors to get the right help. They have experienced professionals who will guide you and ensure that you make use of the opportunity well. Furthermore, they will help you get the required funding and instruct you about the steps well. For sure, with their professional assistance, you will have the opportunity to make the most of your investment.
