HUD 232 Debt Service Coverage Ratio

DSCR: Debt Service Coverage Ratio in Relation to HUD 232 Loans

DSCR: Debt Service Coverage Ratio in Relation to HUD 232 Loans

In addition to LTV, or loan-to-value ratio, DSCR, or debt service coverage ratio, is one of the most important financial metrics that a lender will examine when deciding whether to approve a HUD 232 or HUD 232/223(f) loan. DSCR compares the annual cash flow from a property to it's annual debt service obligation, which includes principal, interest, and other related costs, including MIP.