Deal funded
$142K Cash-Out Refi Nearly Killed by Insurance
Some deals don’t fail because of credit. They fail because of insurance requirements. This was one of them.
asset type
Single-Family
LTV
7.375%
LOAN AMOUNT
$142,500
time to close
12 Days
The borrower had recently completed renovations on their single-family in Fort Myers, FL, and needed to recoup capital to deploy into other projects. Timing mattered. If the loan didn't close before February 1st, he would incur extensive late fees and the refinance would no longer accomplish its purpose.
The borrower's first lender required replacement cost insurance on top of liability and flood coverage. That single requirement crushed the numbers. The additional premium pushed the debt service coverage ratio below 1.0, effectively killing the deal.
The issue wasn't credit, leverage, or property condition. It was an insurance overlay that wasn't even universally required. If Brick City Capital had required replacement cost insurance as well, the deal would have died the same way.
If execution and clarity matter more than just quoting a rate,
we should talk.
Before issuing a term sheet, we confirmed one critical detail: Was replacement cost insurance required? It wasn't. That clarity at intake preserved the DSCR.
Confirmed insurance requirements immediately. Preserved the income ratio before issuing terms.
Ordered a rush appraisal and managed Florida-specific requirements (surveys) simultaneously to protect the timeline.
Loan Closed in 12 Days
Renovation Capital Recouped
No Retrading or Mid-Process Surprises
Without absorbing unnecessary insurance costs that would have permanently lowered returns.
Execution preserved flexibility.
In Florida especially, small structural requirements - insurance overlays, surveys, flood considerations - can quietly kill a deal. Many lenders won't question them, but we will. We know that even a small reduction in DSCR can make a huge difference, so we make sure that every detail works in your favor.
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"The first lender's insurance requirement pushed DSCR below 1.0 and stalled the transaction. This deal came down to confirming insurance requirements upfront and protecting the borrower's debt service ratio before issuing terms."
Florida Brokers handling transactions impacted by insurance, surveys, or state-specific requirements.
Investors pursuing renovation refinances where added expenses are affecting qualification.
Borrowers who are told "the numbers don't work" due to overlays or structural requirements.
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