DSCR

DSCR: Debt Service Coverage Ratio in Relation to HUD 223(f) Loans

DSCR: Debt Service Coverage Ratio in Relation to HUD 223(f) Loans

Debt Service Coverage Ratio, or DSCR, is one of the most important metrics that lenders examine when determining whether to give a HUD 223f loan to a potential borrower. DSCR is designed to compare a property's annual cash flow and its annual debt service in order to assess the likelihood that a borrower will pay his or her debts on time, and avoid a mortgage default.