CASE STUDY · TEXAS
Two Texas deals other lenders couldn’t do
A low appraisal, small loan amounts and deferred-maintenance conditions stalled both deals. Here’s how we closed them.
The short answer
- We took two appraisal transfers and cleaned up the mess left by the other lender.
- We moved both to a lender that will go below a $100,000 loan amount and qualified them on actual rents.
- We cleared the appraisal’s deferred-maintenance conditions that the first lender couldn’t.
- One lender who says no doesn’t speak for the entire market.
THE DEALS
Two single-family rentals in Corpus Christi
| Deal 1 | Deal 2 | |
|---|---|---|
| Loan type | DSCR cash-out refinance | DSCR cash-out refinance |
| Appraised value | $117,000 | $120,000 |
| Loan amount | $81,900 (70%) | $78,000 (65%) |
| Closed | September 2026 | October 2026 |
WHAT WENT WRONG
Why the first lender couldn’t close
- The appraisals came in low, and the loan amounts shrank with them.
- The loans dropped under $100,000. Many DSCR lenders won’t go that small.
- One appraisal flagged deferred maintenance, and the lender couldn’t get those conditions cleared.
HOW WE CLOSED THEM
The right lender and the right rent method
- A lender that goes below $100,000. Smaller loan amounts aren’t our focus, but when a deal needs it, we have lenders who will do it.
- Actual rents. We qualified both properties on actual rents to make the DSCR work. See how lenders calculate rent in our DSCR loan requirements.
- Cleared conditions. We worked the deferred-maintenance conditions through with our lender and got them cleared.
THE LESSON
One lender’s no isn’t the market’s no
Both deals were “dead” at one lender and closed at another. Every lender has its own minimums, rent methods and appetite for conditions. Matching the deal to the right lender is the job.
STRAIGHT ANSWERS
Questions from this case
Can I get a DSCR loan under $100,000?
Yes, with select lenders. Smaller loan amounts aren’t every lender’s appetite, but some will go below $100,000.
What can I do if my DSCR appraisal comes in low?
Look at whether actual rents can carry the DSCR, and whether another lender’s guidelines fit the new value. A low appraisal at one lender doesn’t mean the deal is dead.
What if the appraisal flags deferred maintenance?
Some lenders will clear deferred-maintenance conditions that others won’t. The right lender and a clear plan for the conditions can keep the deal alive.
KEEP READING
DSCR KINGS · INVESTOR FINANCING
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Business-purpose loans for investment properties only; not for owner-occupied homes. Lending guidelines, leverage and loan programs vary by lender and by state and are subject to change. Terms and approval depend on the property, the borrower’s credit and capital-partner guidelines and are not guaranteed. Examples are for illustration only.
