When it comes to CMBS loan underwriting, DSCR and LTV aren’t the only factors that a lender considers. Increasing, lenders are looking at a another metric, debt yield, in order to determine whether it’s truly worth approving a borrower for a conduit loan. Debt yield can be determined by taking a property’s net operating income (NOI), dividing it by the loan amount, and multiplying it by 100.
