$142K Cash-Out Refi Nearly Killed by Insurance

Execution Over Rate Shopping

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.

This wasn’t about rate shopping. It was about execution.

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.

Speed & Clarity

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.

Meet the Loan Officer

“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.”

Brendon Foster

Account Executive

Work with Brendon

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