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Stated Income Loans vs. Traditional Loans: A Deep Dive

Stated Income Loans vs. Traditional Loans: A Deep Dive

Navigating the landscape of home loans can be a daunting task for any prospective homeowner. Among the multitude of options available, two of the most commonly discussed types are Stated Income Loans and Traditional Loans. To help clear up some of the confusion, we will delve deep into each of these loan types, contrast their features, and aim to provide you with the information needed to make an informed decision.

Traditional Loans

Traditional loans are the most common types of home loans. They usually come in two forms: Fixed-Rate and Adjustable Rate Mortgages. With these loans, lenders require comprehensive documentation, including W-2 forms, tax returns, and bank statements to verify your income and ability to repay the loan.

The primary benefits of traditional loans lie in their relatively low interest rates and fixed payment schedules, making them a predictable option. However, they require a good credit history, a stable income source, and usually a substantial down payment.

Stated Income Loans

On the other hand, Stated Income Loans, also known as “no-doc” or “low-doc” loans, require less documentation. As the name suggests, borrowers simply state their income without needing to provide extensive evidence. These loans were designed for self-employed borrowers, or those with variable incomes, who may have a harder time gathering traditional income documentation.

Stated income loans offer flexibility that can be attractive to some borrowers, but they often come with higher interest rates to offset the perceived risk by the lender. They also require a higher down payment and a good credit score.


When comparing the two, Stated Income Loans offer convenience and less documentation, but they come at a cost. Higher interest rates can significantly increase the amount paid over the life of the loan.

In contrast, traditional loans require more paperwork and have stricter qualification criteria, but they typically offer more favorable terms, including lower interest rates.

Final Thoughts

In summary, the choice between a Stated Income Loan and a Traditional Loan depends largely on your personal circumstances, including your income structure, credit score, and your ability to provide documentation. Before making any decision, it’s always best to consult with a mortgage professional who can guide you based on your unique financial situation.

Remember, the key to successful homeownership is not just getting a loan, but getting the loan that’s right for you. Contact Kenbry today to learn more about our stated income loans for commercial real estate.

Why SBA Loans Are Great for Commercial Real Estate

Why SBA Loans Are Great for Commercial Real Estate

When it comes to financing commercial real estate, Small Business Administration (SBA) loans hold a prominent position. These loans, designed by the U.S. government, aim to support small businesses by providing them with capital at favorable terms. Here’s why SBA loans could be an excellent choice for your commercial real estate ventures.

Lower Down Payments

One of the primary advantages of SBA loans for commercial real estate is their lower down payment requirement. Traditional loans often require a down payment ranging between 20% to 30% of the property’s value. In contrast, SBA loans allow down payments as low as 10%, making it easier for small businesses to acquire commercial properties without draining their cash reserves.

Longer Repayment Terms

Another significant advantage of SBA loans is the extended repayment terms they offer. With traditional commercial loans, typical repayment periods range from 5 to 20 years. SBA loans, on the other hand, can have repayment terms of up to 25 years for real estate loans. Longer repayment periods mean lower monthly payments, improving cash flow and financial stability for businesses.

Competitive Interest Rates

SBA loans offer competitive interest rates, often lower than those of conventional commercial loans. The rates are usually based on the prime rate plus a markup rate. The government caps the rates, ensuring that they remain affordable for small businesses.

Flexible Use of Funds

Unlike some traditional loans where you might be restricted in how you use the funds, SBA loans offer more flexibility. Funds from an SBA loan can be used for a variety of purposes, including purchasing land or buildings, construction or renovation costs, or even refinancing existing debt.

Greater Accessibility

Lastly, SBA loans provide greater accessibility to small businesses. For businesses that might not qualify for a conventional loan due to a limited track record or lack of collateral, SBA loans can be a viable alternative. The government guarantees a portion of the loan, thereby reducing the risk for lenders and increasing the likelihood of approval for small businesses.

In conclusion, SBA loans are a powerful tool for financing commercial real estate, offering lower down payments, longer repayment terms, competitive interest rates, flexible use of funds, and greater accessibility. If you’re considering purchasing, building, or renovating a commercial property, it’s worth exploring the benefits an SBA loan from Kenbry.

The Advantages of Using a Private Lender for CRE Financing

The Advantages of Using a Private Lender for CRE Financing

Commercial real estate (CRE) financing is a critical aspect of any business venture. Traditionally, businesses have leaned towards banks and other institutional lenders for financing. However, the rigid structure and stringent requirements of these traditional lending institutions may not be suitable for every business. That’s where private lenders step in, offering flexible, fast, and personalized financial solutions.

Quick Financing

One of the standout advantages of using a private lender is the speed at which they operate. Traditional lenders have to follow a lengthy underwriting process that includes several levels of bureaucracy. Private lenders, on the other hand, have the flexibility to make swift decisions, thereby accelerating the loan approval process. This speed can be particularly advantageous in a competitive real estate market where securing a property rapidly is crucial.


Private lenders provide a higher degree of flexibility compared to traditional lending institutions. They generally function on a case-by-case basis, considering the unique needs and circumstances of each borrower. This flexibility extends to loan terms and repayment options, allowing borrowers to tailor the loan structure to their specific needs.

Less Stringent Criteria

Private lenders often have less stringent eligibility criteria than their traditional counterparts. Where banks may decline applications due to poor credit scores or lack of sufficient collateral, private lenders may still consider the viability of the project itself, offering loans based on the potential profitability of the property.

Personalized Service

Private lenders often provide a more personalized service than traditional lenders. They take the time to understand the borrower’s needs, goals, and plans. This personalized service can be beneficial, particularly for complex or unconventional financing needs that traditional lenders may not understand or accommodate.

In conclusion, private lenders for CRE financing provide an efficient and flexible alternative to traditional lending institutions. They can respond quickly to financing needs, offer significantly more flexibility, have less stringent criteria, and offer a more personalized service. While each financing option has its pros and cons, it’s clear that private lenders fill an important gap in the market and are an option worth considering for commercial real estate investments.

Kenbry is a private lending firm, committed to providing tailored solutions to meet the needs of property investors. If you need CRE financing, contact Kenbry today.

Why Property Flippers Prefer Bridge Loans

Why Property Flippers Prefer Bridge Loans

In the realm of real estate investment, timing is everything. Property flippers, those who buy homes to renovate and sell for profit, often operate in a high-paced environment where access to funds can make or break a deal. It’s in these circumstances where bridge loans prove their worth.

A bridge loan, as the name suggests, serves as a temporary “bridge” that enables investors to secure a property swiftly, even before they’ve sold their current holdings. But why do property flippers often prefer this type of financing?

Quick Access to Funds

The ability to move quickly is a significant advantage in the competitive real estate market. Bridge loans offer the promise of rapid access to funds, often within a week or less. This speed gives property flippers an edge when multiple buyers express interest in a property.


Bridge loans are designed to be short-term, allowing flippers to borrow for specific renovation projects and repay the loan after selling the refurbished property. This flexibility allows investors to use the loan for a variety of purposes, ranging from property acquisition to renovation costs.

No Prepayment Penalties

Unlike traditional loans, bridge loans usually have no prepayment penalties. This feature means that if a flipper finishes their project and sells the property quicker than anticipated, they can pay off their loan early without incurring extra costs.

Less Reliance on Credit History

While credit scores and history are important, bridge loan lenders are primarily interested in the property’s value and the investor’s potential profit. This focus allows flippers with less than stellar credit to still secure funding, provided they demonstrate a sound investment strategy.

Looser Requirements

Bridge loan lenders often have looser requirements compared to traditional banks. This leniency allows for a wider range of flippers to access funding and encourages entrepreneurial spirit within the property flipping industry.

While bridge loans are not without their risks – including higher interest rates and the potential for default if the property doesn’t sell – they offer a unique and valuable financial tool for property flippers. By offering quick access to funds, flexibility, no prepayment penalties, less reliance on credit history, and looser requirements, they allow flippers to seize opportunities and turn them into profits. Contact Kenbry today to get the financing you need for your fix and flip projects.

5 Reasons to Diversify Your Portfolio with Rental Properties

5 Reasons to Diversify Your Portfolio with Rental Properties

When it comes to investment diversification, rental properties stand out as an appealing option deserving serious consideration. Here are five compelling reasons why rental properties should form part of your investment portfolio.

1. Consistent Cash Flow

With rental properties, you can secure a steady stream of income through rent, which can act as a safety net during market volatility. This income is often sufficient to cover your property-related expenses while providing additional cash flow.

2. Appreciation Potential

Over time, real estate has consistently proven to appreciate in value. While the market can fluctuate in the short term, the long-term trend has always been upward. This appreciation can be a significant wealth-building tool.

3. Tax Advantages

Owning rental property comes with several tax benefits. For example, you can deduct rental expenses like mortgage interest, property tax, operating expenses, depreciation, and repairs. These deductions can offset your rental income, thereby reducing your overall tax liability.

4. Inflation Hedge

Inflation erodes the purchasing power of money over time. However, real estate often acts as an effective hedge against inflation. As the cost of living rises, so too can rent prices, enabling property owners to maintain their purchasing power.

5. Control Over Your Investment

Rental properties offer a level of control not always available with other investment types. As the property owner, you can make decisions about property management, rent pricing, and when to buy or sell. This ability to directly influence your investment’s performance can be empowering.

In conclusion, diversifying your investment portfolio with rental properties can provide consistent income, potential appreciation, tax advantages, an inflation hedge, and control over your investment. As with any investment, it’s crucial to do your research and consider your financial goals and risk tolerance before diving in. If you need tailored funding solutions to help you diversify your portfolio, contact the team at Kenbry today.