The Debt Coverage Ratio (DCR) is a financial metric used to evaluate the ability of an income property to cover its debt-related obligations, often applied in the underwriting of mortgage loans.
Mortgage out refers to obtaining financing in excess of the cost to construct a project. It's a process used by developers to secure a permanent loan commitment based on a high percentage of the completed project's value. Due to stricter underwriting criteria, opportunities to mortgage out have become nearly nonexistent.
