Commercial mortgage education
Commercial mortgage underwriting guides.
Understand how cash flow, debt service, property value and project costs fit into a financing discussion. These guides explain the concepts; lender requirements vary by transaction.
Debt-Service Coverage Ratio (DSCR)
DSCR compares a property or business cash-flow measure used by the lender with the debt service that must be paid over the same period.
Net Operating Income (NOI)
NOI is a property-level income measure that generally starts with property revenue and subtracts operating expenses before financing costs and income taxes.
Debt Yield
Debt yield compares net operating income (NOI) with the loan amount and is usually expressed as a percentage.
Loan-to-Value (LTV)
LTV compares the amount of debt with the property value used by the lender for the financing decision.
Loan-to-Cost (LTC)
LTC compares the financing amount with the project cost basis recognized for the transaction.
Commercial Mortgage Rates & Fees
Commercial mortgage pricing is generally determined from the actual transaction rather than a universal public rate applicable to every property and borrower.
Commercial Mortgage Document Checklist
A commercial financing package usually combines property information, transaction details, ownership and borrower information, operating performance and due-diligence records. The exact list varies by asset, transaction and lender.
How Commercial Mortgages Are Underwritten
Commercial mortgage underwriting evaluates the property and transaction together with the borrower or sponsor. Depending on the file, the lender may assess cash flow, value, leverage, tenancy, business performance, experience, liquidity and the proposed repayment structure.
Further reading
Content reviewed September 9, 2026. These resources provide background; individual lender requirements and property circumstances differ. Illustrative calculations are examples, not financing offers.