Investment Real Estate Loans Replace Stated Income Loans

Stated Income Loans Hard to Come By

Investment real estate loans are used by real estate investors to purchase distressed real estate assets, to buy and fix up rehab properties, or to refinance existing investment properties. Since stated income loans disappeared in 2008, investment real estate loans have been a good alternative for stated income borrowers who don’t claim a lot of income. Particularly for real estate investors who have sporadic income throughout the year, the disappearance of stated income loans has created a void that investment loans for real estate has filled.

In 2008, stated income loans disappeared. They were blamed for the havoc that was wreaked in the real estate bubble when unqualified borrowers were stating income high enough to support large real estate purchases. When the wheels fell off the cart in 2008, almost every U.S. bank stopped offering stated income loans altogether. The demand for investment real estate loans didn’t decrease after 2008, but instead it increased tremendously. With stated income loans fueling most investment purchases and refinances prior to the crisis, real estate investors needed an alternative to stated income loans. This is where investment real estate loans began to really take off.

Most investment real estate loans these days are coming from private money lenders, also known as hard money lenders or bridge lenders. In answer to the increase in demand after 2008, private money lenders have begun to offer a competitive investment real estate loan that meets the short-term needs of real estate investors. Although investment real estate loans may have higher interest rates than bank loans, the biggest advantage of these loans is that they fund quickly with not a lot of drama. This has helped real estate investors take advantage of fleeting opportunities in real estate where hundreds of eager buyers may be standing by to pounce. Because many banks cannot act as fast as a private money lender, investment real estate loans have become the top choice among real estate investors in recent years.

Until stated income loans come back under the loan programs offered by U.S. banks, real estate investors will continue to seek out investment real estate loans to replace them. Private money lenders, like us, can provide these types of loans so look no more. To learn more about our investment loans for real estate, click here:

5 thoughts on “Investment Real Estate Loans Replace Stated Income Loans

  1. I have a client who needs a stated income loan. The house was listed at $1,300,000. We negotiated a price at $1,100,000.
    My client will put $500,000 down. He has 750 FICO and a lot of assets providing him around $35,000 in income per month.
    He is in his 70s. He owns a house in another city that he will sell once he moves into his new house in Salt Lake. The house in Alpine is valued at $2,500,000’ish.
    Do you have a loan that would work for him? Please let me know.

    1. Will email you today Ted to see if it’s a fit. Sounds like it could work depending on a few factors. Thanks.

      1. Hello Cory:
        Happy New Year! You are still on our minds with rehabs.We just submitted a offer on 202 Gregory Ave. West Orange Twp, NJ 07052 We would like to hear from you re-guarding this.

        Thank You

  2. Hello,
    I have a unique under value real estate opportunity I am excited about. Looking at purchasing a home currently for sale to be moved and purchasing a county owned land (public auction 4/9/21) to set it on in a twin cities, MN suburb and flip it. I would love to share further details. I am looking for 100% purchase and construction loan. Can you advise if you may be interested in funding, or if you may have any suggestions?

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Corey Curwick Dutton, MBA Park City, Utah

About the author

Corey Curwick Dutton, MBA Park City, Utah - 2005 MBA Graduate with 10 years experience in Business Management including International Management. Corey is a Private Money Lender and Loan Officer. In her spare time Corey enjoys writing on topics in the private money lending industry. She also enjoys hobbies such as mountain biking and skiing in the great outdoors of Utah.