PProvenance CapitalNYC

Guide · 4 min

What commercial lenders look for

The metrics and documents that decide your loan — LTV, DSCR, debt yield, and the story behind them.

The three ratios

Loan-to-value (LTV): your loan divided by the property value — usually capped around 65–75%. Debt service coverage (DSCR): net operating income divided by the annual payment — lenders typically want 1.25x or more. Debt yield: NOI divided by the loan — often 9–10%+, a leverage check that ignores rate.

Run your own numbers first with the Deal Readiness check so there are no surprises when a lender does.

The property's income

Net operating income (NOI) — gross income minus operating expenses, before debt — is the foundation. Lenders scrutinize the rent roll and trailing 12 months of operating statements to confirm the income is real and durable.

The borrower and the plan

Experience with similar property, liquidity and net worth, credit, and a credible business plan all matter — especially on bridge and construction deals, where the plan is the collateral as much as the building.

Ready to run your numbers?

Check your deal against what lenders look for, then get matched — free.

Educational information only — not legal, tax, or financial advice. Terms and rules vary by lender, program, and over time; confirm specifics with your lender and advisors.

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