# Loan Request Breakers Index — Top 10 Decline Reasons

> Top 10 reasons commercial and DSCR loans get declined, with frequency percentages from recent file reviews. Updated quarterly.

Canonical: https://riversidepark.capital/deal-breakers-index
Markdown: https://riversidepark.capital/deal-breakers-index.md

## Quick answer

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.

## Loan parameters

- Loan size: $500,000 – $10,000,000
- Loan type: All Investor Programs

## Eligible assets

- All eligible asset types

## Underwriting guidelines

- Hit DSCR ≥ 1.10
- Document a clear exit (refi or sale)
- Confirm non-owner-occupied use
- Loan size ≥ $500,000

## Top 10 Decline Reasons — Last 4 Quarters (as of Q3 2026)

| # | Decline Reason | Share of Declines |
| --- | --- | --- |
| 1 | DSCR below 1.10 | 22% |
| 2 | No clear exit strategy | 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% |

- Percentages reflect a rolling four-quarter sample of declined files.
- Many declines have multiple contributing factors; primary reason is shown.

- Top reason: DSCR < 1.10 (22%)
- Top 4 reasons: 57% of declines
- Hard fails: DSCR, OO, sub-$500K

## FAQs

**Q: What is the single biggest decline driver?**

Insufficient DSCR — specifically a DSCR below 1.10 — is the most common single reason files get declined.

**Q: How can I avoid these issues?**

Pre-screen against the Loan Approval Matrix and confirm DSCR, leverage, asset type, and exit before submission.

## Related

- [Loan Approval Matrix](https://riversidepark.capital/loan-approval-matrix)
- [DSCR Loan Requirements 2026](https://riversidepark.capital/dscr-loan-requirements-2026)
- [Submit a Loan Request](https://riversidepark.capital/apply)

---
Source: Riverside Park Capital — https://riversidepark.capital/deal-breakers-index