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Bill Rapp, Mortgage Originator:
NMLS 228246
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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
🏬 How Vacant Space Changes a Shopping Center Loan: What CRE Investors Need to Know 💰
🏬 How Vacant Space Changes a Shopping Center Loan: What CRE Investors Need to Know 💰
⚠️ Shopping Center Financing: How Vacancy Impacts NOI, DSCR, Loan Proceeds & Value 🏦
How Vacant Space Changes a Shopping Center Loan
A shopping center can look like an attractive commercial real estate investment: strong location, good traffic, established tenants, and upside from leasing vacant suites.
But when it comes time to finance the acquisition or refinance the property, vacant space can materially change the loan.
Commercial real estate lenders generally aren't financing the building based solely on what it could earn when fully occupied. They are evaluating the property's existing and sustainable cash flow, collateral value, tenant quality, lease structure, borrower strength, and ability to service debt.
That makes vacancy one of the most important issues to understand when financing a retail shopping center.
Vacancy Directly Affects NOI
The first issue is straightforward: an empty suite generally isn't producing contractual base rent.
Suppose a 50,000-square-foot shopping center is 90% occupied. That remaining 5,000 square feet may represent substantial future upside to the investor, but a lender must determine how much—if any—of that potential income can reasonably be incorporated into underwriting.
Bank regulatory guidance describes stabilized NOI analysis as beginning with potential gross income and then applying an appropriate vacancy factor to determine effective gross income. Importantly, that vacancy assumption can differ from the property's current physical vacancy and should reflect expected vacancy and comparable market conditions.
This creates an important distinction:
Investors often buy future upside. Lenders primarily underwrite supportable repayment capacity.
Vacancy Can Reduce DSCR
Debt Service Coverage Ratio, or DSCR, is one of the core measurements used in commercial mortgage underwriting.
The basic calculation is:
DSCR = Net Operating Income ÷ Annual Debt Service
The OCC describes DSCR as a measure of a property's ability to service its debt and notes that the appropriate coverage level depends partly on cash-flow stability.
Consider a simplified example.
If a shopping center generates $500,000 of underwritten NOI and annual mortgage payments are $400,000:
$500,000 ÷ $400,000 = 1.25x DSCR
Now assume vacancy and underwriting adjustments reduce recognized NOI to $440,000:
$440,000 ÷ $400,000 = 1.10x DSCR
The real estate hasn't physically changed—but its ability to support the proposed debt has.
The result could be a smaller loan, additional equity requirement, different pricing or structure, or potentially a different capital source.
Physical Vacancy Isn't the Only Vacancy That Matters
A sophisticated shopping center underwriting analysis goes beyond simply calculating the percentage of empty square footage.
Lenders may evaluate:
·Current physical occupancy and economic occupancy
·Historical vacancy and tenant turnover
·Lease expirations and rollover concentration
·Tenant credit quality and operating history
·Anchor versus inline tenant exposure
·Rent collections and delinquencies
·Market rents compared with contractual rents
·Leasing commissions and tenant-improvement requirements
·Local retail vacancy and competing centers
·Remaining lease terms and renewal options
A center that is 90% occupied with diversified, established tenants can present a very different credit profile from a 90%-occupied property where several major leases expire next year.
Federal banking guidance specifically identifies factors including property cash flow, DSCR, LTV, borrower equity, tenant concentration and stress testing as relevant CRE credit considerations.
Vacancy Can Affect Property Value
Vacancy can also influence the appraisal.
A buyer may believe an empty suite can quickly be leased at $30 per square foot. The lender and appraiser, however, must determine whether that assumption is supported by the market.
They may consider the time required to lease the space, achievable rent, concessions, free rent, tenant improvements, leasing commissions and stabilization costs.
Therefore, $100,000 of potential additional rent does not necessarily translate immediately into $100,000 of underwritten NOI.
Until that income is sufficiently supportable, the lender may take a more conservative position.
Vacancy Can Reduce Loan Proceeds in Two Ways
This is where investors need to pay close attention.
Vacancy can potentially hit a transaction from both the income side and the valuation side.
Lower underwritten NOI can constrain proceeds through DSCR or debt-yield requirements. A lower appraised value can separately constrain proceeds through LTV.
Debt yield is particularly useful because it compares NOI directly with the loan balance and is independent of interest rate and amortization assumptions.
That means an investor shouldn't ask only:
"What LTV will the lender offer?"
A better question is:
"Which underwriting constraint actually determines my maximum loan proceeds?"
Not All Vacancy Is Equal
A vacant 1,500-square-foot inline suite in an otherwise thriving grocery-anchored center isn't necessarily equivalent to losing a 30,000-square-foot anchor.
Lenders want the story behind the vacancy.
Was the tenant recently lost?
Is the suite actively being marketed?
Are there signed LOIs?
Is a replacement tenant negotiating a lease?
How long has the space been vacant?
What are comparable spaces achieving?
How much capital is required to deliver the suite?
Vacancy accompanied by credible leasing momentum can present a much stronger financing story than long-term vacancy with no leasing activity.
Leasing Vacant Space Before Financing Can Be Powerful
Owners preparing for a refinance should think strategically about timing.
Signing a strong tenant before the loan process can potentially improve the financing story—but a signed lease doesn't automatically mean a lender will recognize 100% of the new rent.
The lender may examine whether the tenant has taken possession, whether tenant improvements are complete, whether rent has commenced, whether concessions remain, and the tenant's financial strength.
Still, converting speculative future income into contractual income can materially improve how lenders view the asset.
What Investors Should Prepare Before Approaching Lenders
For a shopping center with meaningful vacancy, prepare a financing package that explains the property's current performance and its path toward stabilization.
Useful documentation can include the current rent roll, trailing-12-month operating statement, historical operating statements, copies of major leases, lease-expiration schedule, tenant sales information when available, leasing pipeline, signed LOIs, market leasing comparables, tenant-improvement estimates and borrower financial information.
The objective is to turn vacancy from an unexplained risk into a quantifiable business plan.
The Bottom Line
Vacant space doesn't automatically make a shopping center unfinanceable.
It changes the underwriting conversation.
A lender needs to determine how vacancy affects NOI, DSCR, debt yield, property value, tenant risk and ultimately loan proceeds.
For investors, that creates an important opportunity: don't simply shop for the lowest advertised commercial mortgage rate. Find the capital source whose underwriting approach best matches the actual property.
At CommLoan, the objective is to evaluate the transaction and identify financing structures and potential capital sources that fit the deal rather than assuming every shopping center belongs in the same lending box.
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Bill Rapp, CCIM
Director | CommLoan
📞 281-222-0433
📧 [email protected]
🌐 https://billrapp.commloan.com/
🌐 https://HoustonCommercialMortgage.com/
Commercial Real Estate Financing Nationwide
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