Finance
A Utah real estate investor's debt service coverage ratio (DSCR) of 1.0 means:
AThe property generates twice its debt service in income
BThe property's NOI exactly equals its debt service—just covering mortgage payments with no cushion✓ Correct
CThe property generates zero income
DThe investor has no mortgage on the property
Explanation
A DSCR of 1.0 means NOI equals debt service—the property barely covers its mortgage payments.
Related Utah Finance Questions
- A Utah lender's 'loan-to-value' and 'debt-to-income' ratios serve as underwriting tools that:
- An impound (escrow) account on a Utah mortgage loan is used to:
- Points paid on a mortgage loan in Utah are:
- A Utah buyer who puts less than 10% down on an FHA loan will pay mortgage insurance premium (MIP) for:
- An assumable mortgage in Utah allows:
- In Utah, when a borrower defaults on a trust deed loan, the lender typically uses:
- An adjustable-rate mortgage (ARM) in Utah has a 5/1 structure. This means:
- The secondary mortgage market in Utah and nationwide primarily:
Practice More Utah Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Utah Quiz →