Commercial Mortgage FAQs


Answering 5 common questions from residential and commercial originators

If you regularly take on speaking engagements or host webinar presentations, you’ll know the feeling.  You’re about to launch into your best story about that client with the multifamily property that was actually just 3 storage units stacked on top of one other when you realize you only have 5 minutes left before the engagement is scheduled to end.  As you race through to the end of your presentation, you think to yourself, “Well, there goes the Q&A…”

We get it.  Silver Hill Funding, LLC regularly hosts webinars and we often have to cut the post-presentation Q&A short or eliminate it entirely due to time constraints.  This is a shame because the questions we receive provide great opportunities for our expert speakers to help mortgage professionals expand their business and generate more income.

So while we work on telling shorter stories and posting fewer bullet points on each presentation slide, read on to get answers to 5 of the most common questions residential and commercial originators ask during Silver Hill presentations.

1. Where are the best places to source small-balance commercial deals?

Residential originators ask this question as they prepare to diversify their existing business with commercial loans.  The truth is that these professionals don’t need to reinvent their marketing strategy to capture commercial opportunities.

If you need help sourcing commercial business, consider taking the following first steps:

  • Meet with your existing referral sources, such as realtors, CPAs, and attorneys, and invite them to send commercial opportunities your way. These sources regularly work with commercial borrowers – and some of the sources may even have commercial mortgage needs themselves!
  • Optimize your LinkedIn profile and join commercial mortgage-related groups. This allows you to network with other professionals while learning more about the industry.
  • Check the 1003 section of closed loan files to see whether clients you’ve secured residential mortgages for in the past also have commercial needs.

2. Do I need to be licensed to close commercial deals?

Since all residential mortgage originators need to be licensed before they can do business in their state, many assume they will need to obtain a license to close commercial loans as well.  But that isn’t always the case.

The truth is it isn’t always clear if a state requires a license in order to broker commercial loans, so we encourage brokers to consult with their attorney and/or search the NMLS online database to determine whether or not a license is required to broker commercial loans in those states where they do business.

While the commercial mortgage industry is regulated more closely than it was in years past, brokers do enjoy the benefit of avoiding the TRID complications that affect business for residential originators.  This benefit alone is enough for many brokers to cross over into the commercial side of the aisle.

3. What are some alternative options for borrowers who can’t provide the documentation necessary to secure a bank loan?

Originators can quickly prove their value to clients by introducing attractive, non-bank options for credit-worthy investors and business owners who struggle to produce tax returns.  While hard money options may be a strong fit for prospective borrowers depending on their financial history and time frame, more borrower-friendly alternatives do exist in today’s market.

For instance, Silver Hill offers separate stated income programs for investors and business owners, as well as a solution that allows borrowers to prove their income by providing 12 consecutive months of business bank statements.  You can learn more about our loan programs here.

4. What documentation should I provide at the beginning of a small-balance commercial transaction?

Every lender is different — here’s what Silver Hill requires at the beginning of a transaction:

  • Commercial loan application
  • Current credit report

In addition, having the following documentation ready will expedite the underwriting process:

  • Previous title policy
  • Insurance agent contact information
  • Property manager contact information
  • Schedule of recent improvements
  • A valid purchase and sales agreement

Most lenders will provide you with a document checklist to use before the transaction begins – if you do your homework and work with your client to prepare the necessary documentation, you can drastically reduce the amount of time needed to close a commercial mortgage transaction.

5. My client wants to take out 3 residential duplex loans and bundle them as one new commercial mortgage. Is that possible?

This is a specific question we receive from time to time, but it’s also an example of the transaction-specific queries brokers ask during most presentations.  These are difficult to answer in group settings because so much depends on the property and borrower in question.

If you have a question about a specific commercial mortgage deal, your best bet is to contact a sales rep offline so they can take the time to learn about your unique situation.  The answer you receive at that point should give you and your client actionable next steps.

(To answer the original question – yes, Silver Hill does give you the ability to refinance duplex, triplex, and fourplex properties as one commercial multifamily loan.  In the case described earlier, the 3 duplex buildings would be referred to as a 6-unit multifamily property.)

The next time you attend a Silver Hill webinar, be sure to ask your commercial mortgage questions throughout the presentation.  If our speakers are forced to hurry through the Q&A portion, there’s a good chance your question will still be answered in a blog much like this one!


Have a small-balance commercial mortgage deal that needs a home?  Call one of our regional managers today or email us at