DSCR (Debt-Service Coverage Ratio) in Relation to HUD 221(d)(4) Loans
DSCR, or debt service coverage ratio, is a measurement of a property’s cash flow compared to the amount of money needed to pay current debts like interest, principal, and lease payments. DSCR is one of the most important metrics used by lenders to determine an income generating property’s eligibility for a loan.
For HUD 221(d)(4) loans, DSCR requirements are:
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