Question
According to lenders, the Debt Service Coverage Ratio for a construction loan should be: A. Usually below 1 but not below .5 B. Equal to
According to lenders, the Debt Service Coverage Ratio for a construction loan should be:
| A. | Usually below 1 but not below .5 | |
| B. | Equal to 1 | |
| C. | Almost always above 1 and generally below 1.1 since it is the least risky type of loan provided | |
| D. | Usually above 1.4 depending on how risky the market is perceived to be |
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Advanced Accounting
Authors: Joe Hoyle, Thomas Schaefer, Timothy Doupnik
10th edition
0-07-794127-6, 978-0-07-79412, 978-0077431808
