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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
Step-by-Step Guide to the VA Loan Process
6 Easy Steps to a VA Loan
For many borrowers, applying for any kind of mortgage may seem daunting.
But, when broken down, this rundown of 6 steps to getting a VA loan is easy to understand.
1. Select a VA-approved Lender
On the surface, it might appear that any lender will do. However, if you dig a little deeper, you may discover that not all lenders are the same. First, only lenders approved by the U.S. Department of Veterans Affairs can originate VA mortgages. Secondly, some lenders focus primarily on conventional loans, while others concentrate almost exclusively on the VA loan program for military clients. Using a VA specialty lender with extensive knowledge about the VA loan process vs. a lender who only funds a few VA mortgages a year may translate into an easier and quicker loan process. To connect with a VA specialty lender, please click here.
2. Obtain a Certificate of Eligibility (COE)
An experienced lender can help you obtain what’s called a Certificate of Eligibility (COE). The COE will prove that you meet initial eligibility standards for VA loan benefits. It will also let the lender know how much entitlement you can receive, which is the amount the Department of Veterans Affairs will guarantee on your VA loan. To get your COE, you’ll need to give your lender a bit of information about your military service. Usually, a COE can be acquired online instantly through a lender’s portal or through the eBenefits portal on the va.gov website. Those servicemembers or surviving spouses whose COEs cannot be obtained online will have to get theirs by mail. A VA lender or the VA can help direct you to the right resource for your specific situation.
3. Pre-Qualify for Your Loan Amount
Pre-qualifying is important, but not required. By choosing to complete this step you can save some time and potential surprises later in the process. To pre-qualify for your loan amount, you’ll have a candid conversation with your VA loan professional about your income, credit history, employment, marital status and other factors. Giving your lender complete details during the pre-qualifying step can help prevent surprises later during underwriting. The pre-qualifying step can also reveal areas that need improvement before you can be approved, such as credit or debt-to-income ratio. While a prequalification letter gives you a ballpark price range for house hunting, it does not guarantee that you will be approved for a loan, and your lender will later have to verify the information you provide. To get a loan requires later final approval by underwriting once all documents have been received and reviewed (see Step 5).
4. Go House Hunting & Find Home
The fourth step is usually one borrowers enjoy because they get to look at homes they might consider buying. Working with a real estate professional who specializes in the VA process can help you get the most out of your benefits. This is true because the VA allows certain fees and costs to be paid by the seller (if both you and the seller agree), and a knowledgeable agent will know this and help you negotiate seller-paid fees. Once you’ve got a signed purchase agreement, you can move forward in the VA loan process.
5. Lender Processes Application
& Orders VA Appraisal
A signed purchase contract is the document you’ll need to finish your initial application. Once your lender has the contract, they will order the VA appraisal. Here again, not just any appraiser will do. Only a professional who is certified to perform appraisals to VA standards can evaluate the home being considered for VA financing. The VA appraiser will make sure the price you’ve agreed to pay for the home corresponds with the current value. Another very important part of the VA appraisal is to inspect the home to make sure it meets the VA minimum property requirements (VA MPRs). However, the VA appraisal does not take the place of a home inspection, which focuses on code violations, defects and the condition of the property. While many borrowers have heard horror stories about the length of the VA appraisal process, the Department of Veterans Affairs gives the appraisers 10 days from order to completion barring extenuating circumstances. While you’re waiting for appraisal documents, you’ll be busy submitting documents of your own to your VA-approved lender to show you have the ability to qualify for the loan. If the home passes appraisal for value and VA minimum property requirements, and it’s verified by the lender that you qualify for your loan, the underwriter will give his or her stamp of approval.
6. Close on Your Loan and Move In
After being approved by the underwriter, all that is left to do is close and move in. During closing, the property legally transfers from the former owner to you. Closing is a step that requires you to sign documents that confirm you understand and agree to the terms of the loan. You will need to provide proof of homeowners insurance and, if required, pay closing costs. Once you’ve signed all your closing documents, you’ll get the keys to your new home.
While these steps may not happen in the order above or be a required part (such as prequalification)*, they represent the typical process for the applicant in obtaining a VA purchase loan. Your lender may need to take other steps. For more information about VA loans, contact an experienced VA-approved lender.
My best advice to you is to call Bill Rapp, the Mortgage Viking, today to discuss your options 281-222-0433.
🏢 Yield Maintenance vs. Defeasance: What Commercial Real Estate Borrowers Need to Know 💰
🏢 Yield Maintenance vs. Defeasance: What Commercial Real Estate Borrowers Need to Know 💰
💵 Yield Maintenance vs. Defeasance Explained: Which Commercial Loan Prepayment Structure Costs More? 🏦
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Yield Maintenance vs. Defeasance: What’s the Difference?
When commercial real estate investors compare financing options, most naturally focus on the interest rate, loan proceeds, amortization, term, and recourse.
But there is another provision that can have a major impact on the economics of a commercial real estate loan:
What happens if you want to pay it off early?
Two prepayment structures investors frequently encounter—particularly with institutional and CMBS financing—are yield maintenance and defeasance.
Both are designed, in different ways, to protect the economics associated with a lender or investor receiving the originally expected stream of payments. But they work very differently.
Understanding those differences before signing your loan documents can be critical if your investment strategy includes selling, refinancing, recapitalizing, or exchanging the property before the loan matures.
What Is Yield Maintenance?
Yield maintenance is a form of prepayment premium designed to compensate the lender or investors for some or all of the economic loss associated with receiving their principal earlier than expected.
The exact calculation is controlled by the loan documents.
Conceptually, the calculation often compares the remaining contractual loan payments with a specified benchmark yield—frequently tied to U.S. Treasury securities or another benchmark specified in the documents.
If prevailing benchmark rates have fallen substantially since your loan was originated, the resulting yield-maintenance premium can be significant.
Simplified Example
Imagine an investor has a commercial mortgage with several years remaining before maturity.
The investor receives an attractive offer for the property and wants to sell.
If the loan documents require yield maintenance, paying off the mortgage may trigger a prepayment premium in addition to the outstanding principal, accrued interest, and other applicable charges.
That premium could materially affect the investor's net sale proceeds.
This is why the lowest interest rate isn't necessarily the lowest-cost loan.
The exit provisions matter too.
What Is Defeasance?
Defeasance works differently.
Instead of simply paying the loan off and calculating a contractual prepayment premium, the borrower generally substitutes a portfolio of qualifying securities for the real estate collateral.
The securities are structured to generate cash flows sufficient to satisfy the remaining scheduled debt-service obligations under the loan, subject to the specific requirements in the loan documents.
Once all defeasance requirements are satisfied, the real estate collateral can generally be released from the mortgage lien.
This allows the borrower to sell or otherwise transact with the property while the required securities support the remaining loan obligations.
Defeasance is particularly associated with CMBS loans.
Yield Maintenance vs. Defeasance
Although both structures address early loan exits, the mechanics are fundamentally different.
Yield Maintenance
The borrower generally pays the outstanding loan balance plus a contractually calculated prepayment premium. The premium is intended to address the lender's or investor's lost yield resulting from the early payoff.
Defeasance
Instead of simply paying the loan off, qualifying securities replace the property's role as collateral and provide the cash flows necessary to meet the scheduled debt obligations.
In practical terms:
Yield maintenance is primarily a prepayment-premium mechanism.
Defeasance is primarily a collateral-substitution mechanism.
That distinction matters.
Why Interest Rates Matter
The interest-rate environment can have a substantial impact on the economics of both structures.
With yield maintenance, falling benchmark rates can increase the economic value of the remaining above-market loan payments and therefore potentially increase the prepayment premium, depending on the contractual formula.
Defeasance costs can also change based on interest rates because the cost of acquiring the required securities depends on the yields available on those securities.
This means investors should not assume that their future exit cost will remain constant.
Defeasance Can Involve Additional Transaction Costs
Defeasance is not simply a matter of buying Treasury securities.
A defeasance transaction can involve multiple parties and expenses, potentially including:
·Legal counsel
·Securities professionals
·Accountants
·Servicers
·Defeasance consultants
·Rating-agency or other third-party requirements where applicable
The specific process and costs depend heavily on the loan documents and transaction.
For that reason, borrowers considering a sale or refinance should investigate defeasance requirements well before the anticipated closing date.
Which Is Better: Yield Maintenance or Defeasance?
There isn't a universal winner.
The better structure depends on the loan terms and the borrower's investment strategy.
A borrower expecting to hold an asset for the full loan term may place less emphasis on prepayment flexibility.
An investor pursuing a shorter value-add strategy may view restrictive prepayment provisions very differently.
Consider questions such as:
How long do I realistically expect to own this property?
Could I sell if values rise faster than expected?
Could I refinance if interest rates fall?
Could I execute a 1031 exchange before maturity?
What happens if my business or investment strategy changes?
These questions should be considered before closing the loan, not just when you're ready to sell.
Don't Compare Commercial Loans on Rate Alone
Suppose you're evaluating two commercial loan offers.
Loan A: Lower interest rate but restrictive prepayment provisions.
Loan B: Slightly higher rate but substantially more exit flexibility.
Which is better?
You can't answer that question from the interest rate alone.
A sophisticated commercial loan comparison should consider:
Rate + Proceeds + Term + Amortization + Recourse + Prepayment + Exit Strategy
The right financing structure should support the business plan for the property.
Ask About the Prepayment Structure Before You Close
Before accepting a commercial real estate loan, ask:
1.What prepayment provisions apply?
2.Is there yield maintenance, defeasance, a step-down penalty, a lockout, or another structure?
3.How is the prepayment amount calculated?
4.Is there a minimum prepayment premium?
5.Is there an open period near maturity?
6.What are the requirements and transaction costs associated with defeasance?
7.Can the loan be assumed by a future buyer?
8.How do these provisions fit my expected hold period?
The answers can materially affect your investment strategy.
The Bottom Line
Yield maintenance and defeasance are not the same thing.
Yield maintenance generally allows early payoff subject to a contractual premium designed to protect the economics of the lender or investors.
Defeasance generally substitutes qualifying securities for the property's collateral and cash-flow obligations so that the real estate can be released.
Both can create substantial costs and complexity when an investor wants to exit a loan early.
That's why commercial real estate borrowers should evaluate the exit structure of a loan with the same seriousness as the interest rate.
At the Bill Rapp – CommLoan Empower Program, I help commercial real estate investors and business owners compare financing alternatives based on more than rate alone. Loan proceeds, DSCR, LTV, amortization, recourse, prepayment provisions, and the borrower's exit strategy all matter.
The objective isn't simply to find a loan.
It's to find financing that fits the investment strategy.
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Bill Rapp, CCIM
Director | CommLoan
📞 281-222-0433
📧 [email protected]
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