Gas Station Construction Loans - Credit History Plays A Vital Role
If you are planning to set up a gas station business or refurbish an existing one, you can apply for gas station construction loans. But, searching for a lender may be a little difficult in recent times as there has been a steady decline in getting this type of loan sanctioned. This is mainly due to a fall in the economy, which has affected thousands of individuals all around the world. In spite of all this, there are several companies that are willing to grant you this loan provided you meet their requirements. You just have to know where and how to search for them.
An individual's credit history plays an important role in getting the application for gas station construction loans approved. When an individual applies for these funds, the lender will first check his credit record. If you have a good credit record, you can easily get approval for the funds without any complications. This is because, a good credit record means, there is less chance for the borrower being a defaulter.
The main problem arises when an individual who is planning to apply for gas station construction loans has a bad credit record. Lenders will not approve the application of such individuals as they have to take huge risks. But, this does not imply that there are no options to qualify. They can get the gas station construction loans sanctioned if they include a partner in their business who has a clean credit record.
If you are planning to involve a partner to get your application of the gas station construction loans approved, you have to plan the business scheme in such a way that you own less than 20% of the total shares. This is very important because, when you pay a visit to the lender, he will be interested in the credit history of your partner as he holds the maximum number of shares. Thus, your application will be approved without any complication. Apart from these, apartment loans are sought-out by property management investors and firms who are planning to purchase apartment units. The units are then rented out to tenants.
A part of the monthly payment made by the tenants is used to pay off the apartment loans and the rest provides a steady income for the investors. In order to get such funds sanctioned, a borrower's credit history, down payment and business scheme are taken into consideration by the lenders. To qualify for the scheme of apartment loans, an individual's minimum credit rating should be a score of 640 and should have a minimum 15% cash down payment.
Besides a borrower's credit record and down payment, the approval of the apartment loans also depends on the business plan. This plan should contain all the details about potential tenants and also of the individual who will be responsible for property management and maintenance. Along with this, the borrowers are also required to submit some proof of income which will help them to sustain their business. But, remember that the requirements of the lenders who offer apartment loans vary from one to another. Thus, it is important to check the requirements before you apply for these funds.