Loan Glossary
Plain-English definitions for every term you'll encounter in the loan process
Showing 2 terms
in Commercial starting with D
D
Debt Service Coverage Ratio (DSCR)
CommercialNOI divided by annual debt service (loan payments). A DSCR of 1.25 means the property generates 25% more income than needed to cover the mortgage. Most commercial lenders require DSCR ≥ 1.20–1.25.
Due Diligence
CommercialThe process of thoroughly investigating a property, business, or loan before committing to a transaction. For commercial loans, this includes reviewing financials, environmental reports, leases, and physical inspections.