Get faster closings and lower fees for 1-4 SFR investor deals
This just in: Silver Hill Funding, LLC is launching a new program to help originators provide financing solutions for borrowers investing in duplex, condo, and other 1-4-unit property types.
Those familiar with the small-balance commercial mortgage industry know that multifamily property owners and investors have special financing needs. They require fast and efficient loan transactions and without them, it can have a critical impact on their business.
Silver Hill is applying the same deep commercial mortgage expertise and efficient underwriting brokers experience with our core products to this new 1-4 Plex program.
The challenges these borrowers face:
The fact that real estate investors often struggle to secure mortgage financing is nothing new. But the specific issues they face when attempting to purchase or refinance smaller investment properties are worth mentioning here:
1. Borrower entity challenges
Investors regularly establish limited liability companies for tax purposes and many prefer to list their LLC as the borrowing entity in a mortgage transaction. Unfortunately, agency programs (think Fannie Mae and Freddie Mac) don’t allow this practice.
2. Documentation challenges
Investors, like other types of self-employed professionals and entrepreneurs, often have trouble proving their income. This in turn makes it more difficult for them to meet the documentation requirements enforced by most traditional lenders.
3. Timing challenges
Originators would be hard-pressed to find a borrower who prefers a drawn-out transaction process. But investors of smaller properties have a particularly strong desire for fast closings. They regularly find themselves in tight spots thanks to a seller’s deadline, an upcoming balloon payment, or any other complication. Lenders who average 60 to 90-day closings are likely to undermine a prospective borrower’s overarching strategy for their investment property.
Silver Hill Funding’s solution:
Our 1-4 Plex Program was designed to help investors overcome the common challenges they face and secure the funding they need – quickly and painlessly.
First, the program is differentiated from agency alternatives in that it allows investors and multifamily property owners to list an LLC as the borrowing entity for their transaction. This point alone makes the program an attractive option for those borrowers who have reservations about borrowing in their own name.
This solution also features far fewer documentation requirements than traditional alternatives. As an example, personal financials like tax returns and 4506Ts are not required at any point in the transaction. The only documents a prospective borrower needs to get started with Silver Hill are a credit report, a complete loan application, and any pertinent property information (photos, rent roll, etc.).
In most cases, a stated income solution that boasts fast closings comes at a price for the borrower. That’s why we make a point of mentioning the 1-4 Plex Program’s competitive pricing. In fact, we invite originators to compare our program’s rates and other features to those of competing lenders. Simply download a full product description sheet here.
What types of properties are eligible?
The 1-4 Plex Program is designed for multifamily properties that contain less than five units, such as du/triplex and small condo properties. This makes the program a great fit for residential originators looking to transition to the commercial arena. By familiarizing themselves with properties that house more than one family, they can feel more prepared to work with mixed-use buildings and other types of commercial properties.
While Silver Hill’s 1-4 Plex Program does feature a number of exciting benefits on paper, the real strength of the solution comes from the experience of our team and the level of service they provide.
Originators and their clients can expect a smooth experience throughout the transaction, as well as a healthy level of communication at every step of the process. And unlike many traditional alternatives, our team prides themselves on their ability to close loans fast and hassle-free.
Contact your Silver Hill Regional Manager today to discuss a deal of your own or to simply learn more about our 1-4 Plex Program.