No Income Verification Construction Loans (For Investment Properties)

A no income verification construction loan, also known as a stated income loan, is a type of 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 approval is based on other factors, such as the guarantors credit history, liquidity and the after renovated value of the collateral.

• Contractors with a minimum of two previous projects.

• Simplified Approval Process: Less paperwork and faster approval.
• Flexible Income Sources: Suitable for borrowers with non-traditional income.

• Loan Amount: $250K-$5MM
• Interest Rates: Typically higher than traditional loans due to increased risk.
• Loan Term: 12-18 months
• Loan-to-Value (LTV) Ratio: 75% purchase of the developed lot, 85% construction costs. For builders with 3 or more previous projects, 90% of construction costs will be funded.

Qualification criteria may include:

• Good Credit Score: Minimum middle credit score of 680 is required. (620 case-by-case)
• Significant Down Payment: Typically 25% of land and 10-15% of construction costs.
• Adequate Reserves: Proof of assets, such as bank statements or investment accounts.
• Strong Property After Renovation Value (ARV): As part of the approval process, an appraisal will be ordered. The appraiser will provide an after renovated value based on the architectural drawings and construction cost breakdown.

• Non owner occupied 1-4 single family homes
• Townhomes
• Condos

No other property types are considered.

We collect the following information to issue an approval:

• Copy of the purchase agreement or settlement statement if the land/lot is owned free and clear.
• Credit Authorization.
• Copy of Social Security Card and driver’s license.
• Copy of 3 months worth of Bank Statements.
• Architectural plans and complete construction cost breakdown.
• Order Appraisal.

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.

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

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

No, these loans are typically available to builders or contractors with a minimum of 2 previous projects.

• Fees vary based upon complexity of the deal.