Finance
What is 'debt service coverage ratio' (DSCR) in Delaware commercial real estate lending?
AThe ratio of mortgage payments to property operating expenses
BNet operating income divided by annual debt service (mortgage payments), measuring the property's ability to cover its debt✓ Correct
CThe ratio of total debt to total property value
DThe ratio of rental income to market value
Explanation
DSCR = NOI ÷ Annual Debt Service. A DSCR of 1.
Related Delaware Finance Questions
- What is 'seller concessions' in a Delaware real estate transaction?
- A deed in lieu of foreclosure allows a borrower to:
- What is a 'conforming loan' in the U.S. mortgage market?
- A Delaware homeowner who refinances their primary residence mortgage has a federally mandated right of rescission for how long?
- A seller in Delaware offers to 'carry back' a second mortgage to help the buyer close. This is known as:
- In Delaware, what does 'equity' in real estate mean?
- What is 'debt-to-income ratio' (DTI) and why is it important in Delaware mortgage qualification?
- What is a 'due-on-sale' clause in a Delaware mortgage?
Practice More Delaware Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Delaware Quiz →