Commercial Lender Dashboard
See all three key lender metrics in one view. Real-time analysis as you type.
Property & Loan Details
Principal + Interest payments for one year
💡 Pro Tip: Lenders look at all 3 metrics together. A strong DSCR can sometimes offset a high LTV, but all three must typically pass minimum thresholds.
Lender Risk Report
Analyzing...Loan ÷ Value
NOI ÷ Debt Service
NOI ÷ Loan Amount
LTV Threshold
≤ 75% (Preferred)
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DSCR Minimum
≥ 1.25x (Required)
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Debt Yield Floor
≥ 10% (CMBS)
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Lender Interpretation Guide: How Banks Evaluate Your Deal
Commercial lenders don't look at just one metric—they evaluate LTV, DSCR, and Debt Yield together to build a complete risk picture. Each metric answers a different question, and your loan approval depends on passing thresholds for all three.
📊 LTV: Equity Cushion
Question answered: "How much of the property's value is the lender financing?"
A 70% LTV means the borrower has 30% equity at risk. If the property value drops, the lender wants enough equity cushion to recover their principal through foreclosure.
💵 DSCR: Cash Flow Safety
Question answered: "Can the property's income cover the loan payments?"
A 1.25x DSCR means the property generates 25% more income than needed for debt payments. This buffer protects against vacancy spikes or expense increases.
🎯 Debt Yield: Lender's Return
Question answered: "What return would the lender get if they had to foreclose?"
A 12% debt yield means the lender would earn 12% on their loan amount from NOI alone. CMBS lenders especially rely on this metric since loans are pooled and sold.
How the Three Metrics Work Together
| Scenario | LTV | DSCR | Debt Yield | Lender Decision |
|---|---|---|---|---|
| All metrics strong | 65% | 1.40x | 14% | ✅ Approved, best rate |
| High LTV, strong cash flow | 78% | 1.35x | 12% | ⚠️ Approved with rate premium |
| Low LTV, weak cash flow | 60% | 1.15x | 9% | ⚠️ May require reserves/guarantor |
| All metrics weak | 82% | 1.05x | 7% | ❌ Decline or restructure |
Frequently Asked Questions
Which metric is most important?
It depends on the lender type. Banks often emphasize DSCR (cash flow coverage). CMBS lenders prioritize Debt Yield (standardized across pools). Life insurance companies focus on LTV (equity cushion). You need to pass minimums for ALL three to get approved by any lender.
Can a strong DSCR offset a high LTV?
Partially. A very strong DSCR (1.40x+) might convince a portfolio lender to accept a 78-80% LTV instead of their typical 75% max. However, there are hard limits—most lenders won't exceed 80% LTV regardless of how strong other metrics are. The same logic applies in reverse: excellent LTV won't save a deal with a DSCR below 1.0x.
Why do CMBS lenders care so much about Debt Yield?
CMBS (Commercial Mortgage-Backed Securities) loans are pooled and sold to investors. Unlike a bank that holds the loan, CMBS investors can't negotiate with borrowers. Debt Yield tells them: "If this loan defaults and we take the property, what's our return?" A 10%+ debt yield means they're protected even if property values drop, because they can cover the debt from cash flow alone.
How can I improve my metrics before approaching a lender?
Improve LTV: Increase down payment or negotiate a lower purchase price. Improve DSCR: Raise rents, reduce operating expenses, or request a lower interest rate/longer amortization. Improve Debt Yield: Only NOI and loan amount affect this—increase income or request a smaller loan.