What is a Global Debt Service Coverage Ratio and When Does it Affect You?

Not all commercial real estate lenders are created equal. Each lender has their own differences and peculiarities. When evaluating your income for loan purposes, some banks will take the debt service coverage ratio (DSCR) of just the property that you are financing. Others however, will take into account all of your other properties to arrive at what it’s called the global debt service coverage ratio. This can be troublesome for some borrowers. If they are just breaking even on one or a few properties, it could negatively affect them on another property they are trying to find. It is useful to get a sense of which lenders use the global debt service coverage ratio and which do not.

Aurum & Sharpe has extent extensive experience in navigating the confusing lending environment. We evaluate whether your global debt service coverage ratio could end up being a problem when you’re trying to finance your property or properties. Call us today for a consultation.

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