Buyer Financing Fell Through? The Transaction May Still Close.

This is for agents with investor and commercial clients

When your buyer is purchasing an investment property, closing in an LLC, buying distressed/as-is, or running a business-purpose transaction, a conventional mortgage decline is often a product mismatch — not a dead deal. The Second Look Desk handles those rescues: hard money, fix-and-flip, bridge, DSCR, gap, and specialty commercial files where the first lender could not perform.

This page is not owner-occupied residential mortgage advice. If your buyer is purchasing a primary home with conventional or FHA financing, route them through their loan officer — RESPA and brokerage compliance rules apply differently there.

Signs the deal is saveable

• Declined for DTI but the property cash-flows or the flip spread works
• Property condition or timeline killed conventional approval
• Investor buyer purchasing in an entity
• Hard money or DSCR lender reduced leverage or backed out before closing
• Wholesale/double-close structure where the end buyer lost financing

Read the agent playbook: Saving Deals That Die on Financing and the blog series on hard money, DSCR, and transactional funding.

What happens when you submit

You (or your buyer) complete the Second Look form with the contract, what went wrong, and the closing deadline. We confirm same-day whether a rescue path exists — leverage restructure, product switch, or gap capital — before you burn the inspection period or lose the seller to backup offers.

For ongoing investor clients, also consider the referral partner program so the next stuck deal has a standing financing partner.

Agent checklist before you submit

1. Confirm the buyer is purchasing for investment or business purpose
2. Get the executed contract and property details from your buyer
3. Ask why the original lender failed — decline, leverage change, appraisal, or no response
4. Confirm days remaining on financing contingency or hard close date
5. Upload the original approval or term sheet if the buyer has it

Related guides: what to do when buyer financing falls through, can a deal be saved after financing falls through.