What Is a DSCR Loan? Formula, Requirements and Examples
The debt service coverage ratio (DSCR) is net operating income divided by annual debt service, and a DSCR loan uses it to qualify investors on the property’s income instead of personal income. See the formula, a worked 1.45x example, ways to improve coverage, and CR Equity AI’s DSCR terms: 1.00x floor, no tax returns, and a typical close in 9–15 days.
Commercial Real Estate Loans: Types, Requirements and How CR Equity AI Lends
Most commercial real estate loans run 65%–80% LTV with a DSCR of 1.20–1.50 and 25–30 year amortization on a 5–10 year term. Here’s how the main loan types compare, what lenders require, and how CR Equity AI funds small balance commercial, bridge and DSCR loans with a decision in about 4 hours.