There are two types of brokers in this world: those who have worked with Silver Hill Funding, LLC and those who have not. If you’re part of the latter group, you may be wondering what we at Silver Hill have to offer you and your small-balance commercial mortgage business.
Answer: options.
We currently have a wide range of programs and products that work for a wide range of investors and small business owners. That means you now have the opportunity to present your clients with not just any solution, but the right solution for their commercial deals.
Interested in partnering with us? Here’s everything you need to know about Silver Hill’s solutions.
Full Doc Commercial Loan Program: For Your Bankable Clients
Picture this: You have a borrower who checks all the boxes to qualify for small-balance commercial funding at a traditional bank: high credit score, able to provide full documentation, and is looking to fund a low-risk property. Still, your client wants flexible options (like 30-year fixed terms and cash-out opportunities) for their deal. That’s when Silver Hill’s Full Doc Program may be a fit.
This solution is for the credit-worthy borrower who wants to lock in competitive rates and take advantage of more options that banks generally don’t make available.
Don’t forget – while banks do offer low rates, they generally take longer to approve loans and tend to work with larger loan amounts. On the other hand, alternative lenders are more likely to accept smaller loans and provide faster approvals. Silver Hill currently offers financing from $100k to $2mm.
When does this program make sense?
- When borrowers require more flexibility than traditional lenders can provide
- When the property in question causes stabilization or seasoning concerns for traditional lenders
- When borrowers are able and willing to provide full documentation
- When borrowers require a faster closing than one could expect with a bank
Click here for the complete list of guidelines and parameters.
Lite Doc Investor Program: For Your Non-Bankable Clients
Decent credit score? Check. Low-risk property? Double check. Ability to provide full documentation? Not so much. Fortunately, there are plenty of reduced documentation options for borrowers who can’t provide tax returns.
Take, for example, Silver Hill’s Lite Doc Investor Program, which allows non-bankable borrowers to qualify for small-balance commercial funding even if they have previously been rejected by banks. With this solution, investors do not have to provide tax returns and—here’s the best part—they can still take advantage of our competitive pricing and flexible options.
We get it. Not every borrower will have the perfect financial situation, but that doesn’t mean they shouldn’t be able to qualify for a commercial mortgage. That’s why with this solution, our expert team of underwriters determine whether your client is a fit by reviewing the appraisal and property cash flow instead of the usual tax returns traditional lenders require during the transaction process.
When does this program make sense?
- When self-employed professionals report lower income for tax reasons
- When investors struggle to show consistent growth through tax returns
- When borrowers require more flexibility than a bank is willing to provide
Learn more about how our Lite Doc program can help your clients here.
No Doc Streamline Program: For Borrowers Who Can’t Provide Tax Returns
Are you working with clients who need even more flexibility, but still want to take advantage of competitive rates on their small-balance commercial deals?
Our No Doc Streamline Program makes it easier for these borrowers to secure financing. That’s because we don’t require them to submit full documentation. They can qualify without providing tax returns, bank statements, or operating statements.
When does this program make sense?
- Borrower reports lower income for tax reasons.
- Borrower struggles to show consistent growth through tax returns.
- Borrower requires more flexibility than a bank can provide.
Learn more about how our Lite Doc program can help your clients here.
Bank Statement Program: For Your Self-Employed Clients
Our Bank Statement option similarly offers a flexible alternative for non-bankable borrowers. The difference is this solution isn’t necessarily a reduced doc option, but an alternative way they can qualify for our main Commercial Loan Program.
Small business owners have the option of submitting bank statements in lieu of tax returns to prove their income and qualify for the loan. This is a popular option for borrowers who a) are self-employed and have an income that is difficult to document or b) do not appear stabilized because of past financial issues.
While traditional lenders require borrowers to submit tax returns to verify their income, this method doesn’t always show an accurate portrayal of the client’s current financial standing. You may have a borrower that has a previous bankruptcy in their records, but is currently the owner of a thriving business. In this case, a bank statement option is a good fit.
At Silver Hill, we request the borrower to simply submit 12 consecutive months of their business bank statements as income verification. Our underwriters can then review and correctly determine whether or not they are a fit.
Who benefits from this program?
- Borrowers who are self-employed
- Borrowers who struggle to show consistent growth through tax returns
- Borrowers who require more flexibility than a bank is willing to provide
Read more about our Bank Statement option this way.
DSCR Program: For Your 1-4 Unit Investors
If there’s one thing you should take from this blog, it’s that Silver Hill is a one-stop shop for all your commercial needs. Case in point: Our DSCR Program offers borrowers an alternative way to secure 1-4-unit investment properties.
Investors of single family rental, duplex, and other 1-4-unit properties can purchase, cash-out, or refinance these properties with competitive rates, low fees, and no tax return requirements.
How does it work? It’s easy – instead of the standard Debt-to-Income (DTI) test, we perform a DSCR-based underwrite and qualify income based on the property’s cash flows, not the borrower’s personal income.
This program not only offers borrowers a solution, it’s also incredibly broker friendly and makes it easier for you to grow this segment of your business. With no lender points, you have more control to structure fees your way.
Why choose Silver Hill’s DSCR Program?
- No lender points
- No tax returns required
- Competitive rates
- Competitive solution for bank fallout
- 30-year fixed rate term available
Get all your DSCR information here.
Broker Benefits
The commercial real estate industry is teeming with competition. Lenders are continuously updating programs and prices to try and get you the best solutions. And sure, pricing is important, but so is the benefits you receive for brokering a deal. Here’s what you get when you choose Silver Hill as your partner:
- Compensation: Brokers can earn up to 5 points (3 in origination, 2 in YSP) when closing Silver Hill deals.
- Collateral: Brokers can market Silver Hill programs using our free, unbranded materials to help grow their business.
- Community: Brokers who partner with Silver Hill join a community that provides certainty, responsiveness, and expertise on all your deals.
How to Get Started
Interested in taking the next step and closing small-balance commercial and DSCR loans with Silver Hill? The first thing you should do is contact your Account Executive to get started on your deals. Once you connect with them, we can help you decide which solution best fits your business needs today.
