Less-than-stellar credit, small loan sizes and certain property types can prove to be complications when it comes to obtaining financing for a commercial property. However, the highest hurdle most small business owners face when looking to attain a bank loan is an inability to properly verify their income. As a commercial mortgage broker, it’s important to know where to place these non-bankable borrowers.
Here’s what you need to do if your borrower can’t easily verify their income:
Find a lender that specializes in nonconforming commercial mortgages.
The first thing you need to do is connect with a lender who handles small-balance loans for borrower’s who can’t obtain bank financing. These are generally story lenders, and they’ll listen to your borrower and look past this challenge to understand your borrower’s true financial strength.
Submit a complete application.
Like any other funding source, a nonconforming commercial mortgage lender will need the appropriate paperwork to get started on your borrower’s request. Be sure to discuss what’s required and submit all pertinent documents.
Provide relevant financials.
While some nonconforming commercial lenders don’t focus on tax returns to underwrite mortgages, you will need to provide proof that your borrower’s income can support the loan. The best policy is to submit the financial documents which will prove your borrower can repay the small-balance commercial mortgage with the initial loan application.
While income verification is a challenge for many small business owners, it doesn’t have to stop them from obtaining the small-balance commercial mortgage they need. There are nonconforming lenders who can look past this issue to understand your borrower’s true situation and can get them the money they need to achieve their goals.