Commercial borrowers have specific needs that must be correctly identified and matched to the right mortgage program. Some of these needs are easier to address than others.
Many borrowers, including different types of self-employed professionals and entrepreneurs, struggle to provide tax returns that accurately reflect their income. Unfortunately, most traditional lenders require this information, leaving them to seek short term solutions that don’t meet their needs.
Our experts at Commercial Direct have worked with thousands of these small-business owners and investors, and over time we’ve developed a deep understanding of the unique difficulties they face. That’s why we’ve created special programs that allow them to secure the types of loans they want without having to provide tax-related information.
Reduced Documentation Program
In the first entry of our 2-part series, we’ll cover Commercial Direct’s solution for commercial property investors — the Silver Program.
What is it?
Our Silver Program is a small-balance commercial mortgage solution that allows investors to secure funding without providing tax returns or a 4506T.
What’s the problem?
Commercial real estate investors often struggle to work with banks and other traditional lenders because their tax returns don’t always tell the whole story. Consider the experienced investor who purchases a run-down apartment building and spends the next two years bringing new tenants to the property and substantially improving the facilities. If she tries to refinance her mortgage for a better rate, she could find that even her most recent tax returns fail to reflect her property’s newfound success.
What’s the Commercial Direct Solution?
Thanks to Commercial Direct’s Silver Program, borrowers like the investor mentioned above can get a long-term, fully amortizing loan without providing tax returns or a 4506T. Instead, our team uses the property’s debt service coverage ratio, or DSCR, to ultimately approve a loan.
It’s an ideal solution for borrowers who can’t provide tax returns as well as those who are merely looking for a simpler application process.
While some lenders’ reduced-documentation programs are limited to multifamily properties, the Commercial Direct Silver Program is available for all eligible property types.
Is this program a good match for your needs?
Don’t let tax return difficulties prevent you from getting a commercial mortgage that makes sense for your business. With reduced documentation programs designed for investors and business owners, Commercial Direct has a solution that will work for you.
Want to get started now? Tell us your story and apply for your loan here.
Zack North is the Director of Marketing for Commercial Direct. As a regular contributor to a number of top industry publications, Zack enjoys writing about topics that help investors and business owners approach commercial mortgage financing with confidence.