underwriting and offer workspaces · Intermediate
Binding-constraint loan sizer
Identify the binding loan constraint under stated assumptions. Includes interactive DSCR LTV debt-yield and optional LTC sizing calculation.
Your assumptions
Illustrative starting values. Replace them with your own evidence. Inputs stay in this browser.
Your scenario, explained
Results
Calculation assumptions
Version 1.0.0 · Educational scenario, subject to the stated assumptions.
How this calculation works
Method and assumptions
DSCR capacity = nonnegative underwritten cash flow ÷ minimum DSCR ÷ annual mortgage constant. Compare with value × LTV, eligible cost × LTC and nonnegative cash flow ÷ debt-yield requirement. The minimum binds.
Worked example
With $300,000 annual underwritten cash flow, a 6.5% rate, 30-year amortization and 1.25x required DSCR, the DSCR loan limit is $3,164,216.39. The other entered limits are $3,500,000 at 70% of $5 million value; $3,975,000 at 75% of $5.3 million cost; and $3,529,411.76 at 8.5% debt yield. DSCR is the binding constraint.
Before using the result
Know the boundaries
- Educational scenario, not a quote, commitment, approval, appraisal or payoff statement.
- Defaults and thresholds are editable illustrations; the executed documents and lender underwriting control.
Method references
Discuss your financing with Jaken Finance Group ↗Keep working through the decision
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