DSCR & Loan Sizing
Find the maximum supportable loan and the binding lender constraint.
Inputs
Lender constraints
Max Supportable Loan
$4,200,000
Binding constraint:LTC
Required Equity
$1,400,000
Resulting DSCR
1.28x
Resulting LTV
66.7%
LTC 75% · DY 10%
Constraint breakdown
| Constraint | Threshold | Implied Max Loan | Binds? |
|---|---|---|---|
| DSCR | ≥ 1.25x | $4,317,003 | |
| LTV | ≤ 70% | $4,410,000 | |
| LTC | ≤ 75% | $4,200,000 | |
| Debt Yield | ≥ 8.5% | $4,941,176 |
Loan details
Annual debt service
$326,893
Monthly payment
$27,241
Loan-to-cost
75%
Loan-to-value
66.7%
Debt yield
10%
DSCR
1.28x