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8.6 Flashcard Deck

Amanda Ukasick

Created on November 27, 2024

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Transcript

How is the Debt Service Coverage Ratio (DSCR) calculated?

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annual NOI divided by annual mortgage debt service.

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What does a Debt Service Coverage Ratio (DSCR) of one mean?

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the property's income is equal to its debt service.

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Who would most likely benefit from a DSCR loan based on their income type?

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investors with mutliple income sources

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How is Net Operating Income (NOI) calculated?

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subtracting operating expenses from total income.