In this article, we have brought together (frequently asked questions) FAQs about dscr loan. You can also ask any questions about DSCR Loans to Us. We would be very happy to answer all your questions.
What is A DSCR Loan ?
DSCR stands for Debt Service Coverage Ratio. It is a financial metric used by lenders to assess how much cash flow is available to repay debt obligations. In simple terms, it measures the borrower’s ability to service their debt payments. DSCR is calculated by dividing the net operating income (NOI) by the total debt service (TDS). Lenders generally require a minimum DSCR of 1.25, indicating that the NOI should be 1.25 times the TDS.