Finance
A South Dakota commercial property's 'debt service coverage ratio' (DSCR) of less than 1.0 means:
AThe property is very profitable
BThe NOI is insufficient to cover the annual debt service (loan payments)✓ Correct
CThe property's value exceeds the loan amount
DThe interest rate on the loan is below market
Explanation
A DSCR below 1.0 means the property's net operating income does not cover annual debt service.
Related South Dakota Finance Questions
- A South Dakota buyer who purchases agricultural land through a Farm Credit System lender is using which type of financing institution?
- In South Dakota, a 'balloon mortgage' requires the borrower to:
- In a fully amortized loan, the monthly payment:
- In South Dakota, a 'prepayment penalty' in a mortgage loan:
- In a South Dakota deed of trust, who holds legal title to the property during the loan period?
- South Dakota's usury laws set limits on:
- Which type of mortgage loan is guaranteed by the Department of Veterans Affairs?
- VA loans for eligible South Dakota veterans offer which significant advantage?
Practice More South Dakota Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free South Dakota Quiz →