REAL ESTATE UNDERWRITING
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DSCR
Also called: debt service coverage ratio · debt coverage
A ratio comparing property cash flow, commonly NOI, with required debt service.
What it means in practice.
Lenders use DSCR to assess whether property income provides a cushion above scheduled principal and interest payments. Definitions and minimums vary by lender and loan program.
Why it matters.
A 1031 deadline does not eliminate lender underwriting, so DSCR feasibility should be assessed early.
Additional notes.
Lenders use DSCR to assess whether property income provides a cushion above scheduled principal and interest payments. Definitions and minimums vary by lender and loan program.
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