Small-Balance Q&A: The Silver Hill Lite Doc Program


Commercial borrowers have specific needs that must be correctly identified and matched to the right mortgage program. Some of these needs are easier to  address than others.

Many borrowers, including different types of self-employed professionals and entrepreneurs, struggle to provide tax returns that accurately reflect their income. Unfortunately, most traditional lenders require this information. If you have a client facing this type of situation, you’ll need to find a different solution to secure the funding they need.

What is the Silver Hill Lite Doc Program?

We understand the difficulties facing this large group of credit-worthy borrowers, so we created a smart solution: the Silver Hill Lite Doc Program. With no tax returns or 4506T required, this program makes refinancing or purchasing commercial property easier for you and your clients. With the Lite Doc Program, Silver Hill can offer financing for mortgage loans to borrowers who may not be able to disclose certain information or whose properties are more valuable than a tax return might show.

While some lenders’ reduced-documentation programs are limited to multifamily properties, Silver Hill’s Lite Doc Program is available for all eligible property types. Here are some other program options and benefits:

  • No tax returns or 4506T
  • Loan Amounts: $250K – $1MM
  • Eligible Property Types: Multifamily, Mixed-Use, Office, Self-Storage, Warehouse, Light Industrial, Retail, Automotive, Mobile Home Parks
  • LTVs up to 70%
  • Amortizations up to 30 years
  • No seasoning requirements
  • Cash-outs
  • Flexible prepayment options
  • Owner-occupied and investor

Our program removes some of the major roadblocks that keep your clients from receiving small-balance commercial mortgage loans. The result is a less-complicated and smoother transaction process.

Which types of borrowers are a good fit for our program?

To better understand the borrowers who can benefit most from our program, take a look at the scenarios below.

Borrower #1: Danielle

Danielle made an opportunistic investment and purchased a neglected warehouse property for $500,000. In the past 6 months, she spent $250,000 and has completely renovated the building. When the time came to refinance her mortgage loan, Danielle took a trip to the bank. Much to her surprise, the bank valued the property at $750,000 on a loan-to-cost basis (acquisition cost plus renovation costs) and ignored its current appraised market value of $1 million.

Danielle thought she could get a better deal at the bank across the street. According to Danielle’s loan officer, the bank’s seasoning requirements prevent commercial borrowers from refinancing until they’ve owned their property for more than 2 years.

Borrower #2: Carlos

Carlos owns an apartment building downtown. The area recently experienced a revitalization with an influx of young people moving to the city. This helped him establish strong cash flow for the property. Carlos eventually decided to visit his bank and use his business’ success as leverage to obtain a more attractive rate on his commercial mortgage.

Carlos was more than happy to share rent roll documentation and other business financials, but when the bank asked for his tax returns dating back 2 years he was not able to show the current financial success of his building. He left the bank empty-handed and wondered if it was really necessary to disclose all that information for a small commercial loan.

While these borrowers have very different issues, our Lite Doc Program would meet both of their needs. With no title seasoning requirements, Danielle could easily refinance her warehouse property with Silver Hill Funding. And our program would allow Carlos to receive his loan without producing his tax returns.

If you have clients like our hypothetical borrowers Danielle and Carlos, you have an opportunity to close their deals quickly and without complication. Make it your mission to fully understand their needs and determine whether our streamline program can be the key to closing their deals.

How can our streamline program help your business?

Borrowers aren’t the only group that can benefit from our reduced documentation program. Mortgage brokers who actively market their ability to overcome tax return hurdles can greatly expand their opportunity to close more deals. You can grow your business using the Silver Hill Lite Doc Program to provide solutions for those who have been turned down by traditional banks and any borrower who is simply looking for a less complicated commercial transaction.

Do you have a deal that fits our Lite Doc Program? Become an approved Silver Hill broker today and tell us your story.

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