Finance
The debt service coverage ratio (DSCR) is used by NJ commercial lenders and is calculated as:
ANOI ÷ Monthly Mortgage Payment
BNOI ÷ Annual Debt Service✓ Correct
CGross Income ÷ Operating Expenses
DLoan Amount ÷ Property Value
Explanation
DSCR = Net Operating Income ÷ Annual Debt Service. A DSCR of 1.
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