Your bank won't renew. Now what?
A renewal decline is not the end of the road. We find out why the bank said no, rebuild your file and take it to lenders that want your kind of loan, or back to your bank with a stronger case.
The first call is free. Independent support: credit decisions remain with the lender.
Heard "we won't renew"? Start here.
- Get the reason, and the dates, in writing
- Re-underwrite the loan at today's terms
- Fix what can be fixed in the file
- Ask for time, and line up a refinance
It's usually one of four reasons.
Banks rarely decline a renewal on a whim. Knowing the real reason tells you whether to push back, fix the file or move the loan.
Cash flow no longer covers the new payment
At today's rate the payment is higher. If net operating income doesn't clear the bank's debt service coverage minimum, the answer is often no, or a smaller loan.
The new appraisal came in lower
A lower value raises loan-to-value. The bank may ask for a paydown, more collateral or a guarantor before it will renew.
The bank is cutting its real estate exposure
Some banks are reducing office, retail or investor real estate across the board. That's a policy decision, not a verdict on you, and other lenders may see it differently.
Missing, late or inconsistent financials
Old tax returns, numbers that don't tie out or an unexplained dip in income can sink a renewal that would otherwise work.
Move before the maturity date moves you.
Get the decline reason, maturity date and any default or extension terms in writing. Have your attorney review your loan documents.
We run the loan at today's rates: payment, coverage, loan-to-value and debt yield, so you know what any lender will see.
Current financials, rent roll and a written explanation of what changed and why the loan still works.
A short extension request to your bank while the file goes to lenders whose appetite fits your property.
Other lenders, other appetites.
A decline at one bank says little about the next one. These are the paths we prepare files for most often after a renewal is declined.
Refinance with a lender that wants the asset
Community banks and credit unions often lend where larger banks have pulled back.
SBA 504 or 7(a)
If your business occupies the property, SBA programs can offer longer terms and lower equity requirements for eligible borrowers.
Bridge financing
Short-term debt can carry the property while occupancy or income recovers, then refinance into a permanent loan.
A stronger renewal request
Sometimes the fix is a complete file, a paydown or added support. We help you make that case clearly.
Tell us about the loan. Pick a time to talk.
Two minutes. We review your details before the call, so the conversation starts with where you stand and what to do next.
Your information is confidential and used only to review your request. We never contact your lender without your permission.
Bank won't renew: FAQ
Can my bank refuse to renew a loan I've always paid on time?
Yes. A maturing loan is a new credit decision. A perfect payment history helps, but the bank re-underwrites at today's rates, values and policies. For questions about your specific loan documents, consult an attorney.
Will the bank give me more time?
Many banks will consider a short extension when a refinance is clearly underway. A complete file and a credible timeline make that request much easier to approve.
How long does a refinance take?
It varies by lender and property, but plan for weeks, not days. Starting with a complete, reconciled file is the biggest thing you can do to shorten it.
Is UW-Flow a lender?
No. We provide independent underwriting and processing support. Credit decisions, terms and funding remain with the lender reviewing the request.
Related: Maturing loans · Balloon payment due · Loan moved to special assets
UW-Flow is a d/b/a of Altira Partners LLC, 501 E Las Olas Blvd, Ste 300, Fort Lauderdale, FL 33301. UW-Flow provides independent underwriting and processing support and is not a lender. Credit decisions, terms and funding remain with the lender reviewing the transaction. No guarantee of loan approval or funding. UW-Flow does not provide legal advice.