This stated income construction loan program provides short-term financing for home builders, developers, and qualified borrowers completing residential construction projects. Loan amounts are available from $200,000 up to $10 million, with financing up to 70% loan-to-value (LTV) and 85% loan-to-cost (LTC).
Stated Income Financing up to $10,000,000
Traditional IRS income verification using Forms 4506-T or 4506-C is not required. Business entities and foreign nationals are eligible, and financing is available for single-family residences and residential properties containing up to four units.
Stated Income Construction Loan Highlights
- Minimum loan amount: $200,000
- Maximum loan amount: $10,000,000
- Up to 75% LTV
- Up to 90% LTC
- Forms 4506-T and 4506-C not required
- Short-term construction financing
- Blanket loans available
- Construction completion financing available
- Construction draw disbursements available
- Business entities eligible
- Foreign nationals eligible
Available Construction Loan Terms
Loan terms are available for:
- 4 months
- 6 months
- 9 months
- 12 months
Shorter loan terms may provide a lower overall financing cost depending on the transaction and loan structure.
Loan-to-Value and Loan-to-Cost
The stated income home builder construction loan program provides financing up to:
- 70% LTV – Loan-to-Value
- 85% LTC – Loan-to-Cost
Final leverage is subject to the property, project, borrower qualifications, construction budget, and lender underwriting requirements.
Eligible Property Types
Eligible residential property types include:
- Single-Family Residence (SFR)
- 2-Unit Properties
- 3-Unit Properties
- 4-Unit Properties
Eligible Occupancy Types
Financing may be available for:
- Owner-Occupied Properties
- Non-Owner-Occupied Properties
Eligible Borrowers
The program may accommodate several borrower structures, including:
- Individual borrowers
- Business entities
- Foreign nationals
- Construction Completion and Draw Disbursements
Financing may be structured for new construction or the completion of an existing construction project. Construction funds may be disbursed through scheduled draws as work is completed and verified according to lender requirements.
Blanket financing may also be available when multiple eligible properties or construction projects are included within a single loan transaction.
Stated Income Construction Loan Underwriting
This program uses an alternative underwriting approach and does not require Forms 4506-T or 4506-C for traditional IRS income verification.
When there are multiple borrowers, the lender qualifies the transaction using the lowest middle credit score of the borrowers.
Additional underwriting requirements may apply based on the loan amount, property type, construction experience, project budget, liquidity, credit profile, and requested leverage.
States Where the Construction Loan Program Is Available
The stated income home builder construction loan program is available in:
Alabama, Arizona, California, Colorado, Florida, Georgia, Hawaii, Illinois, Iowa, Kansas, Louisiana, Maine, Mississippi, Missouri, Nevada, New Hampshire, New Jersey, New Mexico, North Carolina, Oregon, Pennsylvania, South Carolina, Tennessee, Texas, Virginia, Washington, and Wisconsin.
Last Updated on 1 month ago by Broker Mortgages