Question:
What is an unsecured stated income business line of credit?
Answer:The unsecured stated income business line of credit (LOC) can be a very useful financial tool for a business owner. Startup companies may take advantage of it using it as a credit card; also, unsecured LOCs have the check writing possibility, as well.
Unsecured business lines of credit are a very recent product designed by some mortgage and financial companies. You don't need any collateral and the major requirement is to have been in business for 2 years.
General Features of Unsecured Business Lines of Credit
- Check writing access;
- Interest rates lower than most credit cards;
- Stated Income/No Doc available usually up to $400,000;
- Full doc unsecured business LOC can reach $5,000,000 and over;
- Decision making to provide financing is made on some business financials, credit score and credit history. 700 FICO is most often preferable;
- Business plan may be required (unless credit score is excellent).
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Why: Refinance to a fixed rate loan while mortgage rates are still low.
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Why: Because FHA loans are insured by the US Federal Government they have very competitive interest rates and are easier to qualify.
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Why: Know and protect your credit report and score.
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Common misspellings: mortage and morgage