Allied Residential Mortgage

Debt-Service Coverage Ratio

The debt-service coverage ratio applies to corporate, government, and personal finance. In the context of corporate finance, the debt-service coverage ratio (DSCR) is a measurement of a firm’s available cash flow to pay current debt obligations.

Simply put, the DSCR shows investors whether a company has enough income to pay its debts.

To understand how DSCR works, let’s say a real estate developer is looking to obtain a mortgage loan from a local bank. The lender will want to calculate the DSCR to determine the ability of the developer to borrow and pay off their loan as the rental properties they build generate income.

Why Choose Allied Residential Mortgage?

At Allied Residential Mortgage, we understand the unique challenges and opportunities faced by real estate investors.

Our team of experienced mortgage professionals is dedicated to offering tailored solutions like DSCR Loans that enable our clients to achieve their investment objectives.

To explore how a DSCR Loan can support your real estate investment goals, contact Allied Residential Mortgage today. Our experts are here to guide you through every step, providing the insights and assistance you need to make informed decisions about your financing options.