Common Reasons Loan Requests Are Declined
Loan requests most often do not fit because of a low DSCR on a rental or commercial property, an unclear exit, owner-occupied residential use, leverage or a loan amount above the program limit, credit below 680, or documents that cannot be verified. Each reason below comes with a practical fix. The list is not ranked, and we do not publish decline statistics.
Key loan facts
- Loan amount
- From $100,000; up to $5,000,000 for commercial purchase and rate-and-term refinance, up to $5,000,000 for other programs
- Loan type
- All Investor Programs
- Eligible properties
- All eligible asset types
Commercial purchase and rate-and-term refinance: up to $5 million. Commercial cash-out: up to $5 million. Residential DSCR: up to $5 million. Fix & flip: up to $5 million. Construction: up to $5 million. SBA loan limits are separate from total project financing. Not eligible: owner-occupied residential. Limits vary by program, property and deal, and we confirm them for each deal.
As of 2026-10-08
Common reasons, with a practical fix
| Reason | What it means | What can help |
|---|---|---|
| DSCR below the program minimum | For 1-4 unit rentals the minimum is 1.10x, and for commercial loans it is 1.15x. Fix and flip and ground-up construction are not sized on stabilized DSCR. | Lower the loan amount, add equity, or confirm current rent and expenses. Compare rent and payment on the same period. |
| No clear exit | Short-term loans are repaid by a sale or a refinance. Without a plan the risk is hard to size. | Bring comparable sales for a resale, or the terms you expect to refinance into. |
| Owner-occupied residential use | Residential programs are for investor-owned property only. Owner-occupied commercial property can be reviewed as a business-purpose loan. | Confirm how the property will be used. If it will be your home, it is not a fit. |
| Program eligibility | Each program has published property types, limits and states. Not financed: gas stations, car washes, mobile home parks and religious facilities. Washington, DC is not available. | Check the program pages and the lending states page before you apply. |
| Leverage above the limit | Commercial loans go up to 75% LTV; DSCR purchases up to 80% LTV; fix and flip and construction leverage is sized on cost and value and confirmed per deal. Loan limits are $5,000,000 for commercial purchase and rate-and-term refinance and $5,000,000 for everything else. | Bring more cash to closing, or reduce the requested amount. |
| Credit below the minimum | The minimum FICO is 680 on every program. | Review your credit report for errors and apply when the score meets the minimum. |
| Missing construction experience | Ground-up construction requires a licensed contractor and construction experience. Fix and flip prefers prior experience. | Add a licensed contractor with a track record and document the past projects. |
| Property condition | Deferred maintenance can reduce value and complicate closing. | Budget for the repairs, or consider a fix and flip structure if you plan to renovate. |
| Income or rent roll that cannot be verified | Underwriting needs leases, a rent roll or bank statements that match the numbers you gave. | Upload the leases and statements. Explain any gap between stated and actual rent. |
| Title, legal or entity issues | Open liens, entity documents that do not match, or unresolved title exceptions hold up closing. | Get the entity documents in order and clear title items early. |
This list is not ranked, and it is not a statistic. Many files have more than one issue.
Meeting a minimum is not an approval. Final terms follow underwriting, valuation, title and documentation.
Source: Riverside Park Capital (2026-10-08), https://riversidepark.capital/deal-breakers-index. Data may be cited or embedded with attribution.
Lending Guide
Program Details
Eligible Asset Types
- All eligible asset types
Underwriting Guidelines
- Check DSCR against the program minimum before you apply (rentals and commercial)
- Check the loan amount against your program's limit
- Document a clear exit: sale or refinance
- Confirm the property is investor-owned, or owner-occupied commercial
- Confirm the program, property type and state are available
Who This Is For
- Brokers pre-screening deals
- Sponsors preparing an application
Who This Is Not For
- Anyone looking for a credit decision
Frequently Asked Questions
Ready to start a loan request?
Subject to underwriting, collateral review, borrower qualification, and lender approval. Not a commitment to lend.