Commercial Mortgage
Learning Tools
Occupancy
Owner Occupied:
Property purchased to operate own business.
Investment:
Property purchased in order to collect rent from units.
Property purchased to operate own business.
Investment:
Property purchased in order to collect rent from units.
Mortgage Terms
Length of time of the loan.
The following terms are common for Commercial Mortgages:
The following terms are common for Commercial Mortgages:
Rent Roll
Itemization of lands and buildings owned by an entity reflecting the rent due and total amount received from each tenant
DSCR
One of the most important factors of qualification.
The DSCR is the ratio of cash available for debt servicing to interest, principal and lease payments. It is a used to calculate an entity's (person or corporation) ability to produce enough cash to cover its debt. The higher this ratio is, the easier it is to obtain a loan. Commonly most lenders require a DSCR of 1.25 or higher, this is automatically calculated when you fill out the Complete Commercial Form.
The DSCR is the ratio of cash available for debt servicing to interest, principal and lease payments. It is a used to calculate an entity's (person or corporation) ability to produce enough cash to cover its debt. The higher this ratio is, the easier it is to obtain a loan. Commonly most lenders require a DSCR of 1.25 or higher, this is automatically calculated when you fill out the Complete Commercial Form.
Income & Expense Sheet
Itemized breakdown of Income & Expense of property