We specialize in creative financing solutions for investors and entrepreneurs, especially when conventional lenders say “no.”
Recently, we helped a borrower refinance out of an expiring hard money loan with a $2.5 million Debt Service Coverage Ratio (DSCR) loan despite some unique challenges. Here’s how we made it happen.
Loan Snapshot
- Location: Boynton Beach, FL
- Loan Program: No Ratio – DSCR
- Loan Amount: $2,500,000
- Transaction Type: Rate & term refinance
- Property Type: Non-warrantable condo (a hurdle for many lenders)
- Loan-to-Value (LTV): 50%
- Credit Score: 749
The Challenge
The borrower faced an upcoming hard money loan maturity and needed a fast, long-term solution. Conventional banks often shy away from non-warrantable condos (condos that don’t meet Fannie Mae/Freddie Mac guidelines), but our DSCR program provided the perfect fit.
Key obstacles we overcame:
– Non-warrantable condo – Many lenders reject these outright, but we secured approval.
– Refinancing from hard money – Transitioning from a short-term, high-interest loan to a stable, long-term solution.
– Strict timeline – The hard money loan was coming due, requiring a quick close.
Why a DSCR Loan Was the Perfect Solution
DSCR (Debt Service Coverage Ratio) loans focus on the property’s cash flow, not the borrower’s personal income, making them ideal for:
- Real estate investors
- Self-employed borrowers
- Business owners with high expenses but strong rental income
The borrower had strong qualifications with a 749 credit score and 50% LTV, but the non-warrantable condo status made this deal tricky. Our expertise in alternative financing ensured a smooth refinance.
