Case Studies: Business Purpose
DSCR Loan
Location: Queens, New York
Property value: $1.55MM
Utilization: 1-4 unit investment property
FICO: 500
Loan Amount: $788K
Program: DSCR Program
DSCR ratio: 1.0x
Purpose: Cash-out
Type of mortgage: 30-year fixed-rate mortgage
Interest Rate: 9.875%
PPP: 5 year
Hurdle:
The borrower has a very low FICO score and experienced a workplace injury, which resulted in a 12-month absence from work. Because of the loss of income, the borrower was unable to maintain timely mortgage payments, leading to several 90+ day delinquencies, and received a foreclosure warning from the existing lender.
Result:
We are committed to supporting the borrower through his challenging time. We advised the borrower to make an insurance claim and to use the insurance payout to bring the mortgage current. Once the mortgage became current, we proceeded with the refinance under our DSCR Flex Program, which is specifically designed to assist borrowers with lower FICO scores and recent mortgage payment challenges.
This refinance allowed the borrower to access much-needed cash-out funds and successfully avoid foreclosure— helping him regain financial stability.
DSCR Loan
Estimated Market Value: $1.06M
Property Type: 2-unit investment property
Purpose: Cash-out
Loan Amount: $550K
Borrower FICO: 790
Interest Rate: 7.875%
Prepayment Penalty: 3 year
Hurdle:
Tight closing deadline.
Result:
We managed to beat the deadline and the borrower was able to use the cash-out proceeds to purchase the investment property.
Ground-Up Construction Loan
Property Location: Lakewood, NJ
Purpose: Ground -up construction
Property type: Single-family house
FICO: 760
Appraised As-is Value: $750K
Appraised ARV Value: $1.99MM
Total Loan Amount: $1.49MM
Cashout at Closing: $259K
Total Funding of Budget: $972k (100%)
Interest Reserve: $269K
Term: 24 Months
Interest Rate: 11.75%
Hurdle:
Although prior experience was required, verifying the borrower’s construction history proved challenging. Of the eight completed ground-up projects submitted, only two could be independently verified. The borrower had also taken out a $240,000 bridge loan from a private lender and needed to maximize the initial cash-out to repay this obligation.
Result:
Using the public research portal (njpropertyrecords.com), we successfully verified the borrower’s completed ground-up construction projects from the past three years. Without increasing the interest rate, the cash-out at closing was increased from $245,000 to $259,000, ensuring the borrower had sufficient funds to pay off the existing bridge loan, origination fees, and third-party closing costs.
DSCR Loan
Property Location: Doral, FL
Property type: Single-family rental property
Purpose: Cash-out refinance
FICO: 670
Appraisal Value: $902.5K
Total Loan Amount: $525K
LTV: 58%
DSCR: 1.0x
PPP: 3 Years
Interest Rate: 9.625%
APR: 10.295%
Hurdle:
The borrower’s father, a foreign national, had owned the property free and clear for over twenty years before transferring it to the borrower as an investment property in October 2023. When the borrower submitted a loan request for a cash-out refinance in January 2024, the request did not meet the seasoning requirement under the DSCR program.
Result:
The application package for the cash-out refinance was proactively prepared, allowing the borrower to receive proceeds as soon as the six-month ownership requirement was met. To address a tight DSCR ratio, the loan amount was slightly reduced, improving the ratio above 1x and enabling the borrower to secure the best available interest rate.
Hard Money/Bridge Financing
Borrower FICO: 600
Refinance of Existing Hard Money Loan: $120K
Renovation Budget: $100,000
ARV: $480,000
LTV: 75%
Interest Rate: 13%
Origination Fee: 3%
Hurdle:
The borrower, facing a low FICO score and project delays, needed to refinance a maturing fix-and-flip loan into a new one. After being declined by multiple lenders, a solution was needed to secure financing and keep the project on track.
Result:
Despite the borrower’s low FICO score and the need to refinance, Greenhills successfully secured a hard money loan that other lenders couldn’t offer.
DSCR Loan
Appraisal Value: $860,000
Purpose: Max Cash-out
Initial FICO of the Borrower: 664
Updated FICO: 696
Initial LTV: 60%
Updated/Final LTV: 70%
Hurdle:
Despite a low FICO score, the borrower sought to maximize cash-out proceeds from a refinance in order to fund the purchase of a new investment property.
Result:
We worked with the borrower while they successfully improved their FICO score. As a result, we were able to increase LTV from 60% to 70% and get the desired cash-out amount the borrower was seeking.
DSCR Loan
Property Location: Cleveland, TX
Property type: Single Family Rental
Purpose: Rate and Term Refinance
FICO: 690
Appraisal Value: $288,000
Loan Amount: $216,000
LTV: 75%
DSCR: 0.85X
PPP: 5 Years
Interest Rate: 8.75%
APR: 9.193%
Hurdle:
The borrower, a refugee alien with an EAD card and Spanish as their primary language, purchased the property in April 2024—less than one year ago, falling short of the typical ownership seasoning requirements. Additionally, the DSCR ratio was below 1x, presenting further financing challenges.
Result:
After using a hard money loan to renovate and lease the property, the borrower sought long-term financing despite owning the property for less than a year. By leveraging a more flexible loan program, we successfully converted the short-term loan into a long-term DSCR loan. Throughout the funding process, dedicated Spanish-speaking professionals communicated directly with the borrower. Although the borrower was a non-resident alien and the DSCR ratio for the investment property was below 1x, we successfully funded the loan at the desired maximum LTV. Additionally, we helped the borrower lower their interest rate by more than 4%.
