Simplified Documentation - SHF Loans
Conditions Glossary | |
Condition | Condition Information |
K1s, 1120, or 1065 from Tax Return | Required to validate ownership of entity on bank statements if different from borrowing entity. |
Property Tax Bill | Please provide a copy of the latest tax bill received. Required on all transactions, including purchases. |
Proof of Funds held in Ecrow | Proof of funds held in escrow via cancelled check or bank statements showing debit to match Purchase & Sale Contract. |
Past 2 years Federal Business Tax Returns | Required with all COMPLETE schedules and atachments for the Borrowing entity and/or Operating Business located at the subject property. |
Past 2 years Personal Tax Returns | Required with all COMPLETE schedules and atachments for all guarantors. |
Last 12 months Bank Statements for Business Operations (Owner Occupied Bank Statement Program) | Trailing 12 months/12 consecutive bank statements for the business operations. All large deposits subject to additional review. Funds used for closing must be sourced from the same bank statements. (Additional evidence of liquidity may be required to meet the minimum reserve requirements). Additional Bank Statement may be required depending on the month the loan is targeted to close. |
Last 3 months Bank Statements (Owner Occupied Complete Program) | Trailing 3 Months Bank Statements evidencing rental receipts from the tenants in the subject property. (Additional evidence of liquidity will be required to meet the reserve requirements). Please identify the rental deposits for subject property on Bank Statements to match rent roll. |
SHF Loan Application | Completed and Signed Silver Hill Funding Loan Application or 1003 with SHF Loan Supplement Form required for each borrower/guarantor. |
Tri-merged Credit Report | Required on all guarantors, principals or controlling party that have a 25% or greater ownership interest in a legal entity borrower. |
Experian Business Credit Report | Credit report for Business. This will be run by our Underwriting team at the Initial Underwriting review. |
Fully Executed SHF Leter of Intent (LOI) with deposit | All amendments and schedules are required. Please provide extension if the P&S agreement has expired. |
Environmental Due Diligence | Environmental screening report is ordered and obtained by your Processor, who will provide an update and advise on next steps once initial review is completed. |
Operating Statement for Subject Property | Past 2 years and YTD required. |
Rent Roll | Must be dated within 60 days of closing. |
Executed Leases - Commercial | Required with all current addendums for commercial tenants. |
Executed Leases - DSCR | Required with all current addendums for refinance transactions if subject property is occupied. If not available, 3 months of rental receipt is required. |
Capital Expenditure Schedule | Required for subject property if the capital expenditure/improvement occurred in the last 12 months. Lender will provide form to be completed, if applicable. |
Schedule of Real Estate Owned | Please include complete addresses on form. Lender can supply form to be completed. |
Borrower Identification | Required for all Guarantors/Borrowers. Can be satisfied with one of the following: US Passport, US Passport Card, Permanent Resident Alien Card or Alien Registration Receipt Card. Can also be satisfied with Copy of Driver’s License ALONG WITH a Birth Certificate, Voter Registration, or Social Security Card. |
Last 2 months Bank Statements - (Rate/Term Refinances & Cash-out Refinances) | Two consecutive months bank statements showing proof of required reserves. Must be dated within the last 60 days. All large deposits subject to additional review. Funds used for closing costs must be sourced from the same bank statements. Amount of liquidity requirement will be given by the Underwriter once the appraisal arrives. |
Last 2 months Bank Statements - (Purchases) | Two consecutive months bank statements showing proof of required down payment, closing costs and reserves. Must be dated within the last 60 days. All large deposits subject to additional review. Funds used for closing costs must be sourced from the same bank statements. Amount of liquidity requirement will be given by the Underwriter once the appraisal arrives |
Visa | Must include photograph. Required for all foreign national borrowers. May be waived if borrower is a resident of a country that participates in the State Department's Visa Waiver Program (VWP). |
Foreign National Identification | A valid passport for each borrower with photograph, signature page, and evidence of duration of stay permited. Should the borrower qualify for the Visa Waiver Program, a secondary form of ID is required which may include a foreign government issued identification or US driver's license. |
IRS Form W-8BEN | Certificate of Foreign Status must be filed with the IRS. Please supply a copy of the filed certificate. |
HOA Insurance Documents - Property and Liability | Borrower to obtain from HOA directly. This includes both property and liability policy for the condo association and the insurance certificates for both policies. Please note, additional conditions may be required once documents are reviewed. |
HOA Budget Documents | Borrower to obtain from HOA directly. Please note, additional conditions may be required once documents are reviewed. |
Entity Lending Disclosure Form | Lender to provide form. All guarantors must read, sign and return this form. |
Debt Schedule for Operating Business | Lender will provide form to be completed. Must be signed by the guarantor(s). If there are no business debts, please notate as such on the form. |
Proof of Property, Liability, and any other required Insurance for subject | Please provide insurance agent contact information (email, telephone number and name). Lender will contact the insurance agent for documents and requirements once the appraisal comes in. For refinances, please supply a copy of the current policy along with insurance agent contact. |
Current Personal Financial Statement | Required for all guarantors when loan amount or total exposure is ≥$1MM. Net worth minimum must be equal to the loan amount or total exposure. Lender will provide form; must be signed and dated. |
Alta Survey | Provide ALTA Survey if available. If Title Company waives the survey exception without requiring a survey, then lender may waive survey. |
Foreign Qualification or Authorization to Conduct Business Certificate | Required if the subject property is located in state outside where the borrowing entity is registered. |
Tax ID for the Entity | Please supply IRS Leter. |
S/C Corporation Documents | S/C Corp Documents will be referred for review once all required documents have been received. Additional documents may be required for clearance. |
Articles of Incorporation or Certificate of Incorporation | Filed document with Secretary of State required along with all amendments. |
Bylaws with Stock Certificates | If Stock Certificates are not available, please supply K1s, 1120, or 1065 from Tax Returns to confirm ownership interest. |
Certificate of Good Standing | Must validate the current legal standing of the borrowing entity. Online print out from the secretary of state website maybe acceptable in some states. |
Limited Liability Company (LLC) Documents | LLC Documents will be referred for review once all required documents have been received. Additional documents may be required for clearance. |
Articles of Organization or Certificate of Formation | Filed document with Secretary of State required along with all amendments. |
Operating Agreement | Required for all LLCs, including Sole Member LLCs. Must be properly executed. |
Certificate of Good Standing | Must validate the current legal standing of the borrowing entity. Online print out from the secretary of state website maybe acceptable in some states. |
Limited Partnership Documents | Limited Partnership Documents will be referred for review once all required documents have been received. Additional documents may be required for clearance. |
Certificate of Limited Partnership Agreement | Filed document with Secretary of State required along with all amendments. |
Partnership Agreement | Fully executed Partnership Agreement required. |
Schedule/Form K1, 1120, or 1065 from Tax Returns | Please supply one of the following: K1, 1120, or 1065 from Tax Returns. Needed to validate ownership percentage. |
Certificate of Good Standing | Must validate the current legal standing of the borrowing entity. Online print out from the secretary of state website maybe acceptable in some states. |
Trust Documents | Trust Documents will be referred for review once all required documents have been received. Additional documents may be required for clearance. |
Trust Agreement | Complete and fully executed original trust agreement along with any amendments. |
Certificate of Trust | Complete and fully executed document required. |
Documentation showing Alimony Payments | Required upon request. |
Social Security Award Leter | Document from Social Security to confirm continuance of retirement income. |
Pension Leter | Document confirming continuance of retirement income. |
Divorce Decree Documentation | Complete court order document required upon request. |
Form I-94 or 1-94W | Customs and Border Protection Form I-94 Arrival/Departure Record or Form I-94W Nonimmigrant Visa Waiver Arrival/Departure Record. To be obtained from Customs and Border Protection directly. |
Verification of Primary Residence | Please supply a third-party document with an address that matches the primary residence of each borrower on the application, such as a utility bill, lease agreement, or financial statement. |
Foreign National Reserve Requirement | Last 2 months bank statements evidencing 12 months of PITIA in the borrower's US-based account. |
Foreign National Closing Funds | Last 2 months bank statements evidencing funds required to close in the borrower's US-based account. If assets have not been seasoned in a US Banking entity for at least 2 months, please provide at least 6 months bank statements and/or 2 consecutive quarterly statements from foreign account where the funds originated from. |
Property Management Agreement | Please supply if managed by a 3rd party. Contract terms must exceed 1 year and be fully executed. Property Manager must have a minimum of 2 years experience in managing income producing properties. |
Mailing Address | Mailing address where Borrower would like to receive their mortgage statements once the loan has closed. P.O. Box addresses cannot be utilized. |
Profit and Loss Statement for Operating Business - YTD and Last Full Year if under extension (Owner Occupied Complete Program) | The YTD Profit and Loss/Financial Statement is required for the owner occupied business. The last full year's P&L will also be required if business tax returns are under extension. |
Lender Condominium Questionnaire for Commercial Condo | Lender will provide form to be completed. |
Commercial Condominium By-Laws and Documents | Obtain directly from the Commercial Condo Association. |
Condo Project Questionnaire - Fannie Mae form 1076 | Lender to provide form; Borrower to have HOA fill in questionnaire. |
