ATTENTION: For Those who are serious about Getting Pre-Qualified FAST!
Bill Rapp, Mortgage Originator:
NMLS 228246
"Brokers Are Better.
Better Pricing, Better Service!"
Subscribe To My List Below To Get Your Mortgage Quote Now!
Simply enter your name and email below:
WITH PROVEN STRATEGIES & PROVEN RESULTS
HERE'S WHAT MY CLIENTS SAY:
What People Are Saying:
Excellent Service
Bill is an exceptional loan officer. He helped us to purchase our home with very personal and professional service. He helped us navigate the whole process from start to closing without any problems. We didn't think we're qualified to purchase a house, but Bill went above and beyond to find a way to help us achieve our goal. He always responded very quickly with our requests, he would come back with different options with comparison chart to clearly indicate how much we need for down payment, monthly payments, interest rates, closing costs etc.
We would highly recommend Bill to anyone in need of lending services. In fact, we have already recommended Bill to one of our friends on purchasing a house.
--- David Chan - Houston, TX
Bank Statement Lending!
William Rapp of Network Funding, L. P. was very professional and I felt comfortable in dealing with him. I will definitely recommend him to family and friends.
--- Ian F - Missouri City, TX
Professionalism - Expert In Home Style Loan
Bill is an expert in the topic, his explanations and online material make a difference and he is always there from the beginning to the end. He is committed to make thing happen.
--- Felipe Caldern & Carolina Angel Gutierrez
Great Service!
Bill Rapp's handling of our loan (even though out of state) was unparalleled to any service I have been through prior, including 3 different real estate transactions and multiple refinances. Extremely quick close, with great options and flexibility for my families needs. All around A+
--- Chris & Beth Sheehan - San Jose, CA
Knowledgeable and Responsive!
Bill was a pleasure to work with and he made the loan process fairly easy. He answered all questions I had very quickly and was straight forward in doing it. I would recommend Bill to others.
--- Wes Brady - Richmond, TX
Very professional and always returned our calls!
Bill takes a lot of pride in his job and is very dependable. They were very patient and understanding. He went out of his way and explained all my questions and concerns. They were very professional and returned my phone calls and emails. He did a great job and I fully recommend him.
--- Therese, Malcom & Shirley Teixeira - Katy, TX
Great Job!
Bill helped us out from beginning to end of loan process. The loan closed in a timely manner as Bill worked hard with bank to get our to the final steps.
--- Kamal & Theresa Wilson - Hartford, CT
Avid Problem-Solver and Absolute Pleasure to Work With!
Bill Rapp worked very hard to ensure that we closed our loan and were able to move into our new home. He always had alternatives to any problems we encountered while closing. He worked with us from the beginning identifying solutions to any problems that we were having. He was an absolute pleasure to work with!
--- Nikita Rayani & Sanit Tejani - Houston, TX
Awesome to work with!
Being a first-time buyer I came in with lots of questions and concerns. Bill was always available for any questions I had and answered everything to my satisfaction. Bill made the loan process so painless that I could still concentrate on other things. We ended up closing early which made things even better. If you are in need of a lender and want someone who is very approachable and stays on top of your loan then Bill is your guy.
--- Cesar Raya - Richmond, TX
Loan Declined by my bank, and he saved the day!
Bill, did an amazing job helping me close on my house. He took the reigns and reassured me the best route to take to help close. He was accountable, thorough and trustworthy. I will continue to work with Network Funding, L.P. when it comes to home buying in the future because of the quality of service Bill gave.
--- Jacob Smith - Boerne, TX
Bill Rapp Will Definitely Make It Happen!
Bill is the most kind, patient and helpful person I have ever known. He answers his phone calls and emails promptly. You can ask him a million questions, and he will answer each and every one of them. Before I started working with Bill, I had been turned down for a home loan, because of some past credit issues I had, plus I was a single mother. However, once I started working with Bill, he was able to quickly get me a home loan, with a good interest rate. I would recommend that you call him, as he will help you.
--- Corinne Wilson - Roselle, NJ
Knowledgeable, Honest, Trustworthy, and Reliable!
"I will definitely keep you in mind. If anyone I know needs financing, I will send them your way!"
--- Jon & Andrea Saleem, CRPC Financial Advisor - Houston, TX
Best Dam Mortgage Guy a man could know!
"Hands down the best loan experience to date!"
--- Gabe & Chelsea Jackson - Pearland, TX
Phenomenal, Hard Working and Never Quits!
Had a stupid foreclosure that could have been avoided if ex’s attny would have sent my buy out offer. So Bill was able to push this through with a 4 year foreclosure. He worked his butt off, was very diligent with his communication; and was very professional talking to me even when I was screaming and/or crying at him. Highly recommend this lender. He really go to the ends of the earth to help you!
--- Liz Keeter - Harlingen, TX
Exceptional customer service!
Bill is the most kind, patient and helpful person I have ever known. He answers his phone calls and emails promptly. You can ask him a million questions, and he will answer each and every one of them. Before I started working with Bill, I had been turned down for a home loan, because of some past credit issues I had, plus I was a single mother. However, once I started working with Bill, he was able to quickly get me a home loan, with a good interest rate. I would recommend that you call him, as he will help you.
--- Isha Lopez & Mauricio Garcia - Houston, TX
Service with a capitol S
Bill went above and beyond at every turn. He worked late on Saturday, he worked late all the time. We wanted to close ASAP and he really helped make it happen for us.
--- Jeff & Wendy Heger - Houston, TX
Best Buying Experience!
I would would highly recommend going with Network Funding LP. As a first time home buyer I didn't know what to expect. Bill Rapp was very helpful in answering all my questions and guided me through all ghe steps. I couldn't have asked for a better buying experience!
--- Tabitha Turner - Humble, TX
Would recommend him and use him again!
Very involved and professional . Kept me informed and up to date on everything that was going on Went with me closing and was very helpful and knowledgeable.
--- Kathy Ward - Houston, TX
Great experience!
Well I meet bill back in December 2016 he got recommended by my real estate agent we had a house in sight and started the process to get approved but we fail due to my work history and credit bill told me not to give up and put me in contact with a credit repair company they help me bring my score up and bill walk me thru the process of getting a new line so this time around we got approved before looking for our house after we found it we still had a couple of hick up but with bills help on Sunday 6-18-17 to be exact Father's Day bill called me to give me the great news that we had got approved and the closing date was as scheduled bill was more than just a lender to my family he became a friend and I'm alway going to have him in mind for any other financial situation.
--- Alejandres Felimon - Richmond, TX
I really liked his attitude!
I wouldn't usually say this but the way he had handled my mortgage was really pleasant. I personally enjoyed the time spent with him while we discussed feasible rates. He's a great man with a great personality and he offered really low interests as well. Definitely recommend him to others.
--- Tom Troiano - Atlantic City, NJ
He's nothing short of a miracle!
I'm a self-employed businessman and had him figure out the mortgage of the house after 30% down payment. The interest rates I received were incredibly low given what I had thought of earlier. One other important thing to note was that I hadn't really taken any loans earlier, so I had no credit history. He helped me out with all that as well so I can't really call him anything else but a miracle.
--- Fran Suarez - Cleveland, OH
He's really helpful!
I made a bid to him and the very same day he gave me an offer which I couldn't resist. It was too intimidating with those incredibly low interest rates and all, thoroughly recommend him.
--- Kenny Mickle - Houston, TX
Expeditious!
Bill was very expeditious and made it real easy going through the loan process. I felt he was on top of things.
I deal with investment properties and will more than likely call on him again.
--- Wayne King - Pensacola, FL
Bill was great!
Bill made us feel like a friend all the way thru the process. He was patient and explained everything he needed clearly. He was available ANYTIME we had questions or needed more information. Hopefully we won’t go thru this process again anytime soon, but if we do - we’d choose Bill! =)
--- Barbra & Nick Grimmer - Austin, TX
Great broker!
Bill was a great broker to work with. As first time home buyers we had many questions about the process, Bill took the time to help us even calling us back on weekends with answers. I would not hesitate to recommend him to anyone looking for a broker to work with.
--- Murray & Lisa Turner - Pensacola, FL
Outstanding service!
I couldn't have been more pleased with Bill's level of service. He made what is typically a lengthy, arduous process far quicker and easier at every turn. I'm extremely comfortable recommending Bill to friends and family, and will definitely utilize his services again!
--- Jim Lipari - Austin, TX
Jumbo and Non-QM Mortgages: Made Simple
Getting a jumbo or Non-QM mortgage is easier than most people expect. This guide explains what these loans are, who they’re for, and when they make sense.
What Is a Jumbo or Non-QM Loan?
A jumbo mortgage—also called a non-conforming loan—is any mortgage that does not meet the guidelines set by Fannie Mae and Freddie Mac.
Fannie Mae and Freddie Mac were created by Congress to provide liquidity and stability in the mortgage market. They buy mortgages from lenders, but only if those loans meet strict rules for:
Loan amount
Credit score
Down payment
Debt-to-income ratio
Post-closing reserves
Loans that exceed these limits are considered non-conforming.
When Do You Need a Jumbo Loan?
You’ll need a jumbo loan when the loan amount exceeds the conforming limit in your area.
How Jumbo and Non-QM Loans Are Underwritten
Jumbo loans are evaluated using the same fundamentals as conventional loans:
Credit score
Down payment
Debt-to-income ratio (DTI)
Cash reserves after closing
That said, jumbo loans often allow more flexibility in how those factors are evaluated.
Credit Scores
Most jumbo programs are available with credit scores as low as 660, though higher scores receive better rates. Borrowers with 760+ credit generally receive the most favorable terms.
Cash Reserves
Jumbo loans usually require more reserves than conforming loans.
Typical requirement: 12 months of reserves
Often split between liquid cash and retirement assets
Exceptions may be available with strong income, low DTI, or large down payments.
Where Jumbo Loans Are More Flexible
Higher DTI allowances
While conforming loans often cap DTI around 43%, jumbo loans may allow higher ratios if the borrower has strong reserves or equity.
More logical income analysis
Self-employed borrowers may qualify with one year of tax returns instead of two if they can document business stability and industry experience.
Lower down payments without mortgage insurance
Some jumbo programs allow 10% down—and sometimes less—without mortgage insurance. Rates may be slightly higher, and DTI requirements are typically stricter.
Piggyback loan structures
In certain cases, buyers can combine a first and second mortgage to reduce the down payment to as little as 5%. These structures are highly specialized and lender-specific.
Who Typically Uses Jumbo or Non-QM Loans?
These loans are well-suited for high-income earners who don’t want—or don’t have—their wealth tied up in cash. This group is often referred to as HENRYs: High Earners, Not Rich Yet.
HENRY borrowers often:
Earn $250,000–$500,000+ annually
Have strong credit histories
Hold significant retirement and investment assets
Prefer liquidity over tying up cash in a large down payment
Tax Considerations
Jumbo loans don’t automatically create tax advantages.
Mortgage interest is only deductible on the first $1 million of mortgage debt. If your loan exceeds that amount, the interest on the excess is not deductible.
For this reason, some borrowers choose to compare:
One jumbo loan
vs.
Two smaller loans or alternative structures
Always consult a tax professional before assuming tax benefits.
Choosing the Right Professionals
Buying a home—especially with a jumbo or Non-QM loan—is complex. You should always work with professionals who represent your interests, not just the transaction.
Real Estate Representation
Seller’s agents represent the seller
Buyer’s agents represent the buyer
Transaction brokers represent no one
As a buyer, it’s almost always best to work with a buyer’s agent who has a legal duty to protect your interests.
Mortgage Broker vs. Bank
A mortgage broker typically has access to many lenders, not just one bank’s in-house programs. This often results in:
Better pricing
More flexible loan options
Specialized programs banks may not offer
Even if you like your bank, remember: most banks sell loans shortly after closing anyway. Loyalty should never cost you better terms.
Foreign National Mortgages
You do not need to be a U.S. citizen to qualify for a mortgage.
Eligible Borrowers
Permanent residents (green card holders)
Non-permanent residents with valid work authorization
Refugees or individuals granted asylum
Non-resident foreign buyers may also qualify, but usually with:
Higher down payments (30–50%)
Higher interest rates
Fewer program options
Legal residency and proper documentation are mandatory.
Bank Statement Loans for Self-Employed Borrowers
If you’re self-employed and traditional tax returns don’t reflect your true income, a bank statement mortgage may be the solution.
How They Work
Instead of W-2s or tax returns, lenders use 12–24 months of bank statements to calculate income based on actual deposits.
Ideal For:
Business owners
Independent contractors
Freelancers and gig workers
Borrowers with significant tax write-offs
Trade-Offs
Because these loans are considered Non-QM:
Rates are typically higher
Down payments may be larger
Terms vary widely by lender, so shopping matters.
Final Thought
If you’ve been told “no” by a bank or lender, it doesn’t mean you can’t qualify—it often means you’re speaking with the wrong person.
In real estate and lending, who you work with matters.
Questions About Jumbo, Non-QM, or Bank Statement Loans?
Schedule a free, no-obligation consultation with a mortgage expert who knows how to structure complex deals efficiently.
Contact the Mortgage Viking
📞 281-222-0433
🏗️ Financing New Self-Storage Developments: SBA 7(a), SBA 504 & Bank Loan Options 🔑
🏗️ Financing New Self-Storage Developments: SBA 7(a), SBA 504 & Bank Loan Options 🔑
💰 Building a Self-Storage Facility? How to Finance New Construction with SBA & Bank Loans 🚧
Financing New Storage Developments: SBA 7(a), SBA 504, and Bank/Credit Union Loans
Developing a new self-storage facility can be an attractive commercial real estate opportunity, but getting from raw land to a stabilized property requires more than finding the right site.
You also need the right financing structure.
Unlike purchasing an existing stabilized self-storage property, ground-up development introduces construction risk, lease-up risk, cost overruns, and a period when the property may generate little or no operating income. That means lenders typically evaluate both the real estate and the underlying business plan.
For qualified projects, SBA 7(a) loans, SBA 504 loans, and conventional bank or credit union construction loans can all be potential financing solutions.
The important question isn't simply:
"Which lender has the lowest rate?"
It's:
"Which financing structure best fits the project, borrower, construction plan, and long-term business strategy?"
Let's look at the major options.
Why Financing a New Self-Storage Development Is Different
A stabilized self-storage facility already has an operating history. A lender can review occupancy, rental income, expenses, net operating income, and debt-service coverage.
A new development doesn't have that history.
Instead, lenders may need to underwrite projections involving:
·Land acquisition and existing land equity
·Construction costs
·Site work and infrastructure
·Soft costs
·Contingency reserves
·Interest carry
·Market feasibility
·Projected rental rates
·Lease-up assumptions
·Stabilized occupancy
·Sponsor liquidity
·Borrower experience
·Guarantor strength
·Exit or permanent financing strategy
The lender is effectively underwriting what the property should become, not simply what it produces today.
That's why preparing a strong development package can be just as important as choosing the loan program.
Option #1: SBA 7(a) Financing for Self-Storage Development
An SBA 7(a) loan can potentially finance eligible owner-operated self-storage businesses when the transaction and borrower satisfy SBA eligibility requirements.
One of the biggest attractions of SBA 7(a) financing is flexibility.
Depending on the transaction and current SBA requirements, eligible proceeds may potentially address multiple project costs within a single financing structure, including real estate acquisition, construction and other qualifying business expenses.
That can make the program particularly interesting when the project isn't simply a real estate development but an operating business requiring several categories of capital.
When SBA 7(a) May Make Sense
An SBA 7(a) structure may be worth evaluating when the borrower intends to operate the storage business and wants financing that can potentially combine several eligible project expenses.
The underwriting will still matter tremendously.
Expect the lender to scrutinize the development budget, projections, feasibility, borrower injection, liquidity, experience, global cash flow, credit profile and repayment strategy.
Important distinction: SBA financing isn't designed as passive investment-property financing. Eligibility and occupancy/operating requirements matter, and a self-storage project must be structured to comply with the applicable SBA rules.
Option #2: SBA 504 Loans for New Self-Storage Construction
The SBA 504 program is another potential solution for qualifying owner-operated self-storage developments involving fixed assets.
A typical SBA 504 transaction combines financing from a conventional lender with financing supported through a Certified Development Company, plus borrower equity.
For eligible projects, this structure can be attractive because it is designed around long-term fixed assets such as commercial real estate and major equipment.
Why Consider SBA 504?
For the right borrower and project, potential advantages can include:
Lower equity requirements. Preserving capital can be extremely important during construction and lease-up.
Long-term financing. A development should ideally have financing aligned with the economic life of the asset.
Fixed-rate component. The SBA-backed 504 portion can provide long-term fixed-rate financing.
Capital preservation. Keeping additional liquidity available can provide a valuable cushion against construction surprises and slower-than-projected lease-up.
But SBA 504 financing also comes with eligibility requirements and additional transaction mechanics. New businesses and certain special-purpose properties may also require greater borrower contribution.
The capital stack needs to be modeled for the specific transaction rather than assuming a standard structure will apply.
Option #3: Conventional Bank and Credit Union Construction Loans
For experienced developers with strong liquidity and sufficient equity, a conventional bank or credit union construction loan may be the most straightforward solution.
Banks and credit unions can have considerable discretion in how they underwrite these transactions.
A conventional lender may evaluate:
·Loan-to-cost
·Loan-to-value
·Borrower equity
·Guarantor liquidity
·Net worth
·Development experience
·Market feasibility
·Construction budget
·General contractor experience
·Projected stabilization
·Debt-service coverage
·Recourse
·Interest reserves
·Construction timeline
One lender might love self-storage development in a particular market while another has reached its internal concentration limit and won't consider another storage loan.
That is why lender selection matters.
A strong project presented to the wrong lender can still produce a rejection.
SBA vs. Conventional Financing: What's the Better Choice?
There isn't a universal winner.
An SBA loan might offer a compelling capital structure for an eligible owner-operated project, particularly when conserving borrower capital is important.
A conventional bank or credit union loan may provide greater flexibility for an experienced developer with substantial equity and a strong banking relationship.
The decision should be based on the entire capital structure, not just the interest rate.
Consider:
Equity requirement: How much cash must you contribute?
Interest rate: Is it fixed or floating?
Amortization: How quickly will principal be repaid?
Construction period: How are draws handled?
Interest carry: Is interest during construction included?
Recourse: What guarantees are required?
Fees: What are the total financing costs?
Prepayment: What restrictions or penalties apply?
Permanent financing: Does the construction loan convert, or will you need to refinance after stabilization?
Those variables can materially change the economics of the development.
What Lenders Want to See in a Self-Storage Development
One of the best ways to improve the financing process is to approach lenders with a complete and financeable story.
That normally starts with the site and development plan.
Where is the property? What is the surrounding population? What are household growth trends? How much competing storage inventory already exists? What's currently under construction?
Then comes the financial model.
What is the total development cost? How much equity is being invested? How quickly is occupancy projected to grow? What rental rates support the projections? When does the property reach break-even and stabilization?
Finally, lenders need to understand the sponsor.
Does the borrower have development, construction, commercial real estate, or self-storage operating experience? What liquidity remains after closing? What does the guarantor's financial position look like if lease-up takes longer than anticipated?
The stronger those answers are, the easier it becomes to identify lenders whose underwriting criteria match the transaction.
Don't Finance the Project in a Vacuum
One of the biggest financing mistakes developers can make is choosing debt based primarily on the advertised rate.
Imagine one loan offers a slightly lower rate but requires substantially more equity.
Another provides more leverage but carries a higher rate.
A third offers attractive construction financing but creates refinancing risk immediately after completion.
Which one is best?
You can't answer that from the interest rate alone.
You need to understand the project's capital requirements, construction timeline, lease-up period, stabilization strategy, cash flow, and long-term ownership plan.
The financing should support the business plan—not force the business plan to accommodate the financing.
Start the Financing Conversation Early
Developers shouldn't wait until construction is ready to begin before talking to lenders.
Starting earlier gives you an opportunity to determine whether the project's assumptions are financeable before committing significant capital.
That can help identify issues involving equity, liquidity, construction costs, feasibility, borrower experience, guarantor requirements, or projected debt coverage while there is still time to address them.
It also allows you to compare SBA 7(a), SBA 504, bank, and credit union financing options rather than being forced into whichever lender can meet an approaching deadline.
How CommLoan Can Help
At CommLoan, commercial real estate borrowers can evaluate financing opportunities across a broad lending marketplace rather than relying exclusively on a single institution.
For a new self-storage development, that can be particularly valuable because lender appetite varies considerably.
The objective isn't simply to find a loan.
It's to identify a financing structure that aligns the construction budget, required equity, debt service, lease-up period, and long-term strategy.
If you're planning a new self-storage development, consider evaluating your financing alternatives before you finalize the capital stack.
Top of Form
Bottom of Form
Bill Rapp, CCIM
Director | CommLoan
📞 281-222-0433
📧 [email protected]
🌐 https://billrapp.commloan.com/
🌐 https://HoustonCommercialMortgage.com/
Commercial Real Estate Financing Nationwide
https://billrapp.commloan.com/
https://author.billrapponline.com/
https://www.amazon.com/dp/B0F32Z5BH2
https://veed.cello.so/FOmzTty6oi9
https://buymeacoffee.com/vikingente3
https://creplaybookseries.billrapponline.com
https://creplaybook.billrapponline.com/
©Bill Rapp, CCIM - Director - CommLoan
Main Office:
Medallion Funds
[email protected]
11920 Southern Highlands PKWY Suite 302Las Vegas, NV 89141
Texas Complaint and Recovery Fund Notice
