92214 Resource 78777 78860 78860 1118266976556 1139710489758 Controlled Commercial Real Estate Financing and the Debt Service Coverage Ratio

The Custom is to Express the DSCR to One-Hundredths

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 /> 9 application/xml false commercial financing commercial loan commercial loan rates commercial mortgage commercial mortgage rates commercial real estate loan Apply to Hundreds of Commercial Lenders in Two Minutes http://www.c-loans.com/onlineapp Mozilla/4.0 (compatible; MSIE 6.0; Windows NT 5.1; SV1; .NET CLR 1.1.4322) 71.50.246.209 71.50.246.209 GBlackburne false true false false true 198508 false false true false false false true 78777 blog blogsite/CLoans/web