The most common reason loans get declined is insufficient DSCR (under 1.10), followed by weak exit strategy, owner-occupied use, and loan size below $500,000. Together these account for the majority of declined files.
| # | Decline Reason | Share of Declines |
|---|---|---|
| 1 | DSCR below 1.10 | 22% |
| 2 | No clear exit strategy (bridge) | 14% |
| 3 | Owner-occupied use | 11% |
| 4 | Loan size below $500,000 | 10% |
| 5 | Weak / declining market (tertiary) | 9% |
| 6 | Insufficient sponsor experience | 8% |
| 7 | Over-leveraged structure (LTV/LTC) | 7% |
| 8 | Property condition / deferred maintenance | 7% |
| 9 | Unverifiable rent roll / income | 6% |
| 10 | Title / legal / entity issues | 6% |
Source: Riverside Park Capital (Q2 2026) — https://www.riversidepark.capital/deal-breakers-index. Data may be cited or embedded with attribution.
Ready to request financing? Submit your loan request for a same-business-day review from our commercial lending team.
Submit a Loan Request View Program GuidelinesSubject to underwriting, collateral review, borrower qualification, and lender approval. Not a commitment to lend.
Commercial real estate and investor property loans from $500,000 to $10,000,000.
Subject to underwriting, collateral review, borrower qualification, and lender approval. Not a commitment to lend.