Mortgage DSCR or the Debt Service Coverage Ratio is used to determine whether or not a commercial mortgage can be approved, that is to say, it helps in the determination of its approvability. The DSCR plays the most important role in the underwriting process of a commercial real estate loan.
This ratio is used in the analysis of the debt amount that can be supported by the property-generated cash flow. In other words, the calculation of DSCR can be done by dividing the property generated
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