The Best No Doc / No Income Verification Commercial Real Estate Loan Options

A no income verification or no doc commercial real estate loan, is a type of commercial mortgage loan where the lender does not require the borrower to provide traditional income documentation, such as pay stubs, tax returns, or W-2 forms. Instead, the loan approval is based on other factors, such as the borrower’s credit history and the value of the subject property.

No income verification or no doc commercial real estate loans are often used by:

• Self-employed individuals
• Freelancers
• Real estate investors
• Individuals with complex income streams
• Those with significant assets but irregular income

• Simplified Approval Process: Less paperwork and faster approval.
• Flexible Income Sources: Suitable for borrowers with non-traditional income.
• Privacy: No need to disclose personal financial information.

• Loan Amount: Varies based on lender and borrower’s profile.
• Interest Rates: Typically higher than traditional loans due to increased risk.
• Loan Term: Can range from short-term (1-5 years) to long-term (15-30 years).
• Loan to Value (LTV) is generally 75% of the subject property but can go higher, up to 85% depending on the loan scenario.

Change to: Qualification criteria may include: –

• Good Credit Score
• Significant Down Payment: Typically 15% to 30% of the purchase price depending on loan scenario.
• Adequate Reserves: Proof of assets, such as bank statements or investment accounts.
• Strong Subject Property Value: The property must have sufficient value to serve as collateral.

No income verification or no doc commercial real estate loans can be used to finance various types of properties, including: –

• Investment residences & office condos
• Investment commercial properties
• Storage facilities & mobile home parks
• Vacation homes used as investment properties
• Industrial warehouses
• Multi-family residences
• Ground up construction or renovation of single family homes, condos, townhomes or multi-family properties

We collect the following information to issue an approval: –

• Address of subject property
• Loan purpose
• Copy of social security & ID
• Loan Application
• Articles of incorporation on the borrowing entity
• Copy of most recent 3 consecutive months of bank statements
• Credit score estimate from client (credit will be pulled later)
• Approval turnaround time is 24-48 hours typically

Yes, some risks include:

• Higher Interest Rates: Can lead to higher overall loan costs.
• Stricter Terms: May include higher down payments and lower LTV ratios.
• Potential for Foreclosure: If you cannot make the payments, the lender can foreclose on the property.
• Prepayment penalty: Most non construction no income verification loans will have a prepayment penalty dependent on the loan scenario and that prepay can be bought-out or reduced if the applicant desires on most programs. That normally means a higher interest rate.

The approval process is generally faster than traditional loans, often taking a few weeks to get to closing. The exact timeline depends on the lender and the complexity of the application.

Yes, no income verification loans are commonly used for investment properties, including rental properties, fix-andflip projects, and commercial real estate.

No, these loans are typically available to borrowers with strong credit histories and significant assets. Lenders may have specific criteria that borrowers must meet to qualify.

• 2% of loan amount in points are collected at closing normally. Sometimes a higher amount of points is collected depending on how complex the loan scenario is.
• The appraisal fee is normally paid by applicant if applicant chooses to move forward with the loan offer.