- Financing Programs · Stated & Light-Doc
When tax returns don't tell the full story.
Streamlined-documentation commercial financing for self-employed borrowers, real estate investors, and operators whose true income lives outside their 1040.
Most successful self-employed borrowers and real estate investors share a common problem: their tax returns make them look poorer than they actually are. Aggressive depreciation, business expense allocation, and legitimate tax planning all reduce reported income and conventional commercial underwriting penalizes that. The deal looks marginal on paper. The borrower is anything but.
Stated and light-documentation programs were built for exactly this situation. Rather than reconstructing tax returns into qualifying income, these programs evaluate the borrower and the deal differently through bank statements, property cash flow, asset reserves, or a combination. The right structure depends on what your actual financial picture looks like and what your property cash flows.
These programs aren’t loose. The lenders behind them are sophisticated, the underwriting is rigorous, and the documentation is real. What’s reduced is the reliance on tax-return-derived income not the standard of approval. We work with the lenders who specialize in this lane and know which structure fits which borrower.
- Best Fit For
SBA financing is a fit if:
- You're self-employed and your tax returns understate your true income
- You're a real estate investor financing a non-owner-occupied property
- You operate primarily through pass-through entities with significant deductions
- You have substantial liquid assets but inconsistent W-2 income
- Your deal has been declined for income/DTI reasons unrelated to property fundamentals
- You need to close on a timeline that doesn't accommodate full traditional underwriting
- Available Programs
01
Bank Statement Programs
Income qualification based on 12 or 24 months of business or personal bank statements rather than tax returns. Deposits are analyzed and a qualifying income figure is calculated from cash flow patterns. Best for self employed borrowers with strong banking but lean tax returns.
02
DSCR Programs
Qualification based entirely on the property’s cash flow rather than the borrower’s personal income. The property must generate sufficient income to cover the proposed debt service (typically 1.0x–1.25x DSCR). Best for real estate investors and non-owner-occupied properties.
03
Asset-Based Programs
Qualification based on liquid assets investment portfolios, cash reserves, retirement accounts depleted over a calculation period to derive qualifying income. Best for high-net-worth borrowers with limited current income but substantial wealth.
- Program Parameters
Where these programs tend to land.
| Parameter | Typical Range | Notes |
|---|---|---|
| Loan Size | $250K – $10M+ | Larger transactions case-by-case |
| Loan-to-Value | Up to 75% | 65–70% more typical for stronger pricing |
| DSCR Minimum | 1.0x – 1.25x | Program-dependent |
| Term Length | 5, 7, 10, 30 years | Some programs offer 30-year fixed structures |
| Amortization | Up to 30 years | Interest-only available on select programs |
| Documentation | Bank statements, P&L, or DSCR-only | No tax returns required on most programs |
| Property Types | Multi-family, mixed-use, retail, office, industrial | Some programs cover specialty types |
| Borrower | Self-employed, investor, or entity | Foreign nationals accepted on select programs |
Stated and light-documentation programs are designed for specific borrower profiles. Eligibility, terms, and rates depend on borrower documentation, property characteristics, and lender program. All rates and fees are subject to change.
- FaQs
Frequently Asked Questions
Are stated-income loans the same as the no-doc loans from before 2008?
No. Modern stated and light-documentation programs are far more rigorous. Borrowers still document income just not exclusively through tax returns. Bank statements, property cash flow, and assets are all verified. The lenders running these programs survived 2008 because they underwrote them properly.
What rate premium should I expect compared to a conventional commercial mortgage?
Pricing varies by program and borrower profile. Bank statement and DSCR programs typically price 50–150 basis points above conventional rates for similar profiles. The trade-off is qualifying based on your actual financial picture rather than your taxable income for many self-employed borrowers, that’s the difference between getting financing and not.
Can I use a stated program for a primary residence or owner-occupied property?
Stated and light-documentation programs in commercial finance focus on investment properties and non-owner-occupied commercial real estate. For owner-occupied commercial, see our SBA Loans or Commercial Mortgages pages. Residential stated programs are outside TJA’s commercial focus.
How quickly can these deals close?
Often faster than conventional commercial sometimes 30 days or less when the file is clean and the appraisal cooperates. The reduced documentation requirements compress underwriting; everything else (appraisal, title, environmental) runs the same timeline as any commercial deal.
Are these programs available in all states?
Most are. A handful of programs are restricted to specific states or regions; we’ll confirm availability based on your property location during the discovery call.
Will I need a personal guarantee?
Most stated and light-documentation programs are recourse, with personal guarantees from primary entity owners. A small number of programs offer non-recourse structures on stronger files. We’ll lay out both options where they exist.
Tax returns don't define your deal.
Tell us about your property and your actual financial picture. We’ll match you with the right structure.