Commerical Loan Denial

[Josephine Mondello]

Hi,

Has anyone ever heard of an investor being turned down on a commercial loan for "property level specifics"? We were told underwriting shot it down on day 29/30 because the age of the roof (which is 30 year architectural and 20 years old) was too old? The insurance company did not have an issue with the roof.

[Benjamin Aaker]

They can refuse to do the loan for anything. They are trying to tell you that they didn't reject the loan because of your personal ability to repay the loan, but because they didn't like something about the property. The loan officer that you use tries to "sell" the deal to the underwriters, who have no interaction with the lendee. They take their time and can reject it for any number of reasons. Pretty annoying to have this happen on the 11th hour. I suggest finding another bank.