110793 Resource 78789 78860 1071 1134669622860 1215812351670 Controlled Commercial Financing and the Debt Service Coverage Ratio

The Custom and Practice is to Express the DSCR to One-Hundredths

<p>In commercial mortgage underwriting, the debt service coverage ratio (DSCR) is customarily computed to two places to the right of the decimal point.&nbsp; <br /><br />In other words, a debt service coverage ratio of 1.346 would be rounded to 1.35. &nbsp; A debt service coverage ratio of 1.1 is customarily expressed as 1.10.&nbsp; <br /><br />Interestingly, a breakeven cash flow is customarily shown on the Executive Loan Summary as 1.0 - notwithstanding the custom to express a DSCR to two places to the right of the decimal point.<br /><br />One of our new loan officers recently expressed a DSCR as one-point-twenty-seven.&nbsp; Oops.&nbsp;&nbsp; Busted.&nbsp; She just revealed to her lender that she is a rookie.&nbsp; She should have said one-point-two-seven. <br /></p> 9 application/xml false commercial financing commercial lenders commercial loan commercial mortgage commercial real estate loans Apply to 750 Commercial Lenders in Just Four Minutes http://www.c-loans.com/onlineapp Mozilla/4.0 (compatible; MSIE 7.0; Windows NT 5.1; .NET CLR 1.0.3705; .NET CLR 1.1.4322; Media Center PC 4.0) 127.0.0.1 127.0.0.1 johngaudio 67.190.87.246 false true false false true 198508 false false true false false false true 78789 blog blogsite/CLoans/web