Commercial DSCR

A commercial DSCR loan qualifies on the property's net operating income compared to its annual debt payments, called the debt service coverage ratio. If the property earns enough to cover the payments with room to spare, it can qualify without your personal or business tax returns carrying the decision.

Lenders look at the property's income and expenses, its appraised value, your down payment, and you as the sponsor, including credit, liquidity and experience. Each lender sets its own minimum coverage ratio and loan-to-value, which vary by property type.

Start with the property's numbers, such as the rent roll, leases and operating statements, along with the purchase contract or your current loan. As a broker, we take the deal to the commercial lenders that fit, compare their terms and help you through closing.

Often, yes. Many commercial loans carry a prepayment penalty or yield maintenance for part of the term. The structure varies by lender, so we compare it alongside the rate and terms and match it to how long you plan to hold.

Commercial terms vary widely from lender to lender, and each one prefers different property types and deal sizes. A broker shops the deal across many lenders at once, so you can compare structures side by side instead of applying one lender at a time.