Oct 3, 2018

Debt Service Coverage Ratio (DSCR) in Relation to CMBS Loans

Debt Service Coverage Ratio, or DSCR, is one of the key metrics that lenders use when determining a borrower’s eligibility for a CMBS loan. DSCR can be calculated by dividing a property’s net operating income (NOI), with its annual debt service (including principal, interest, taxes, and related costs).