Show acronym definitions, worked derivations, and the What Changed feed.
Loan Request
Manual entry accepts values above the slider range.
Specifically debt on the subject property, so it enters property debt service.
The first payment falls one month after this date.
Collateral & Cost Basis
Drives LTV, LTC, cap rate, and the equity requirement.
Purchase price plus hard costs, soft costs, and reserves.
Cash Flow
Select which stream qualifies for the coverage test.
All three ratios are always calculated and shown side by side. This selects which drives the headline card and loan sizing. Property and business are never blended; the global view is a matched aggregation, not a blend.
Historical (optional). As-reported figures for the current / historical coverage ratio. Leave at zero and the current figures are used, with the interface saying so.
Operating-Company Cash Flow
CLP §12.3.1 conservative default: NI + interest + depreciation + amortization.
Adds affiliate rent back to opco cash flow and brings the affiliate real estate debt into its denominator.
Guarantor & Related Entities
Credited in full — no haircut. The conservatism is in the exclusions below.
Recurring sources only.
Distributions actually received — never taxable income the partner never saw.
Excluded by default as non-recurring, per CIPP §6.1.1.
Required by GPS §15.4.1.2 wherever guarantor cash flow is relied upon. Added back for covenant testing per §15.4.1.2(a).
Documented per GPS §15.4.1.2.
Income already counted elsewhere in this analysis.
Rent this entity receives from the operating company. Entering an amount here while the owner-occupied add-back is applied is the same rent counted twice.
No percentage haircut is applied. The covenant figure is higher because GPS §15.4.1.2(a) keeps the living-expense allowance out of covenant calculations.
POLICY-SUPPORTED CURRENT TREATMENT. GPS §15.4.1.2(a) excludes living expenses from covenant calculations and addresses nothing else. Supported K-1 distributions and other tax-to-cash adjustments are therefore NOT removed from covenant cash flow merely for being tax-to-cash adjustments; each must remain supported, recurring where appropriate, traceable, and consistent with the applicable covenant definition. Where a product Policy or Loan Agreement defines covenant cash flow differently, that definition controls.
Without one, the cash flow is credited but tagged uncontrolled per CLP §1.5.1.
The global view clears only because related-entity cash flow is credited, and the party is recorded as unlimited guaranty. GPS §15.4.1.1(a) admits that support only from an alter ego or a co-borrower.
Existing Facilities
Each facility is classified explicitly. Classification is never inferred from the instrument.
Specifically debt on the subject property. Tested by the property coverage ratio, and by the global ratio when the property participates in the global analysis.
CLP §1.2.1 measures debt service on the full commitment, drawn or not. Zero falls back to the balance.
Contractual remaining amortization.
No principal component. The only case where a shock moves interest alone.
Excluded from surviving debt service, so it is not counted twice.
Not outstanding after closing.
The operating company's own obligations, including unsecured C&I debt. Tested by the business ratio and the global ratio, never by the property ratio.
CLP §1.2.1 measures debt service on the full commitment, drawn or not. Zero falls back to the balance.
Contractual remaining amortization.
No principal component. The only case where a shock moves interest alone.
Excluded from surviving debt service, so it is not counted twice.
Fixed rate — a shock does not change its cost.
The operating company's own obligations, including unsecured C&I debt. Tested by the business ratio and the global ratio, never by the property ratio.
CLP §1.2.1 measures debt service on the full commitment, drawn or not. Zero falls back to the balance.
No contractual amortization, so policy supplies one: 60 months. CLP §2.1 — 60-month amortization forced on a revolving line.
No principal component. The only case where a shock moves interest alone.
Excluded from surviving debt service, so it is not counted twice.
Selected, but inert until stress for existing outside debt is switched on.
Global Analysis
Cash flow and debt service must stay matched across the borrower, guarantor, and related entities.
Required: state whether the subject property participates in the global analysis.
Property debt service is included in global debt service automatically. The two sides are matched by construction and cannot be separated here.
Property NOI is included in global cash flow, so the corresponding property debt service is included in global debt service. Cash flow and obligations stay matched.
Rate Structure
All rate components are entered manually in Phase 1.
A rate fixed for the term of the note.
Optional minimum all-in rate.
Optional maximum all-in rate.
Payment Structure
A term shorter than the amortization period produces a balloon at maturity.
5 years (60 mos)
- Note: The term is shorter than the amortization period, so a balloon balance is due at maturity. This is the normal commercial structure.
25 years (300 mos)
None
Underwriting Conventions
Both selections change the calculated coverage. Neither is a Solera policy default.
Post-IO amortizing. The amortizing payment that takes effect once any interest-only period expires, annualised. Tests coverage against the obligation the borrower must ultimately carry rather than a temporary concession.
30/360. Every month accrues 30 days of interest on a 360-day year, so each period is exactly one twelfth of the annual rate. Simple and predictable; common on fixed-rate notes.
What it affects: interest accrual in every period, and therefore the principal split, the balloon balance, interest-only payments, and total interest. It does not change the level amortizing payment, which is computed with the standard periodic method at one twelfth of the annual rate — as a commercial note quotes it.
Notes on this structure
- 1 surviving floating facility is selected for stress but not being repriced, because stressing existing outside debt is switched off. That is Solera's default; turn it on where Credit determines this deal warrants it.
- The term is shorter than the amortization period, so a balloon balance is due at maturity. This is the normal commercial structure.
$3,000,000
Requested principal
7.250%
Entered directly
$21,684.21
Principal and interest
$581,212
$260,211 proposed + $321,001 surviving
1.32x
$765,000 Global cash flow over pro forma debt service
1.40x
Living allowance added back per GPS §15.4.1.2(a)
78.9%
Against $3,800,000 of value
83.3%
Against $3,600,000 of cost
11.5%
NOI over loan — independent of rate and term
5 yrs
To maturity
25 yrs
Principal repayment schedule
$2,743,530
Due in a single payment at maturity
9.1%
NOI over value
$600,000
16.7% of total project cost
$2,850,000
LTV is the binding constraint
DSCR Framework
Calculated coverage measured against each configured test value.
1.32x
Global cash flow over pro forma global annual debt service. This is the ratio the test values below are measured against.
1.32x
Test value 1.25x · cushion 0.07x
Mandatory minimum from Commercial Loan Policy §1.2.1. No product-specific Policy requirement is configured, so the general Commercial Loan Policy §1.2.1 minimum controls.
1.32x
Test value 1.20x · cushion 0.12x
A GUIDELINE, in the Commercial Loan Policy’s own words: in most cases cash flow should exceed debt service by 20%. Shown for visibility. It does not lower the §1.2.1 minimum, and clearing it is not clearing the minimum.
1.40x
Test value 1.25x · cushion 0.15x
Coverage a loan agreement would test on an ongoing basis, measured WITHOUT deducting living expenses per GPS §15.4.1.2(a). It is higher than the underwriting figure for that reason — the two answer different questions.
1.32x
Test value 1.35x · short by 0.03x
Coverage the institution would prefer to see, above the stated minimum. Falling between the minimum and the preferred level is a structuring conversation, not a failure.
1.22x
Test value 1.25x · short by 0.03x
Coverage if the all-in rate rose by 200 basis points with cash flow held constant. Only the proposed loan reprices; surviving debt is held at its current cost.
Demo / configurable underwriting assumption. These thresholds are configurable Phase 1 test values, not credit policy. Solera policy does state advance rates, coverage minimums, amortization and maturity limits — by product, in the Policy Source Inventory below — but no product is selected here, so none of them is the applicable requirement yet. Applicable Solera policy values will be automatically selected by loan product in the Policy Engine. Current test values: minimum 1.25x, covenant 1.25x, preferred 1.35x. Edit them in Underwriting Assumptions.
Minimum coverage provenance. Commercial Loan Policy §1.2.1 — a mandatory minimum of 1.25x, measured at the business level on the full loan commitment at maximum applicable amortization. The Capacity section’s 1.20x is a guideline in the Policy’s own words and does not lower it; it is reported alongside. Under §1.2.1.1 a specific product Policy stating a different DSCR is resolved to the more conservative applicable requirement, so 1.25x is the general Commercial Loan Policy minimum and NOT a universal Solera DSCR for every product.
DSCR by Measurement Basis
Each ratio names the cash flow and the debt service that produced it. These are different measures, not different estimates of one number.
Property DSCR
Property NOI against debt specifically on this property.
Business DSCR
Business CFADS against the operating company's own obligations.
Global DSCR
Borrower, guarantor, and related entities, with cash flow and debt service matched.
Debt Service Build-Up
The proposed loan measured every way, then existing debt added to reach pro forma.
$260,211/ yr
$21,684.21 / mo
$260,211/ yr
$21,684.21 / mo
$260,211/ yr
$21,684.21 / mo
$0/ yr
$0.00 / mo
Property NOI is included in global cash flow, so the corresponding property debt service is included in global debt service. Cash flow and obligations stay matched.
Structure It
What the current assumptions support, and the gap that remains.
For reference, the maximum TOTAL debt service would support $7,055,827 of principal on the proposed terms — but existing debt already consumes part of that capacity, so it is not a loan the borrower can take.
$3,000,000
The amount being tested
$3,354,964
At 1.25x DSCR on $765,000 of Global cash flow, after surviving debt service
$2,850,000
At 75.0% of $3,800,000 value
$2,880,000
At 80.0% of $3,600,000 cost
$2,850,000
The lowest of the applicable constraints. LTV is binding.
$150,000
The request exceeds the preliminary structural maximum by this amount.
Approximately $150,000 of additional equity or equivalent structural improvement would be needed based on the current assumptions.
Value binds. The advance rate against appraised value (75%) caps the loan below what cash flow or project cost would support, so the deal is collateral-constrained. Value is the binding constraint, so the gap would also close through a higher supported appraised value or a larger equity contribution. These are arithmetic consequences of the entered assumptions, not a credit recommendation.
Rate Stress Scope
Which debt reprices under the shock. Deal-specific — set it for this request, not as a standing rule.
Default on. The proposed facility reprices under the shock.
Default off. Turn on only where Credit determines this deal's outside floating exposure should be included.
- Proposed Solera facility: repriced
- Surviving outside facilities repriced: 0 of 1 eligible
- Eligible facilities are floating, surviving, and carry an outstanding balance. None reprice while the master switch is off.
- Note: 1 surviving floating facility is selected for stress but not being repriced, because stressing existing outside debt is switched off. That is Solera's default; turn it on where Credit determines this deal warrants it.
Rate Stress
The proposed Solera facility reprices. Surviving outside debt is held at its current cost (1 floating facility is eligible but not selected). Cash flow is held constant throughout.
7.250%
No shock applied
- Proposed loan payment
- $21,684.21
- Pro forma annual debt service
- $581,212
- DSCR
- 1.32x
8.250%
Shock applied: +100 bps
- Proposed loan payment
- $23,653.50
- Pro forma annual debt service
- $604,843
- DSCR
- 1.26x
$23,631 more debt service than the base case.
9.250%
Shock applied: +200 bps
- Proposed loan payment
- $25,691.46
- Pro forma annual debt service
- $629,299
- DSCR
- 1.22x
$48,087 more debt service than the base case.
10.250%
Shock applied: +300 bps
- Proposed loan payment
- $27,791.50
- Pro forma annual debt service
- $654,499
- DSCR
- 1.17x
$73,287 more debt service than the base case.
STRESS REQUIRED BY POLICY WHERE APPLICABLE
MAGNITUDE = CONFIGURABLE / CREDIT JUDGMENT UNLESS SPECIFIC POLICY STATES OTHERWISE
Scenario Comparison
Save and compare up to 4 structures. Each column recalculates against the current assumptions.
No structures saved yet. Adjust the inputs on the left, then save the structure to compare it against alternatives.
Amortization Schedule
60 monthly periods through maturity. Interest accrues on the 30/360 convention.
| # | Payment Date | Beginning Balance | Rate | Days | Scheduled Payment | Principal | Interest | Ending Balance | Cum. Principal | Cum. Interest | Period |
|---|---|---|---|---|---|---|---|---|---|---|---|
| 1 | Feb 1, 2026 | $3,000,000.00 | 7.250% | 30 | $21,684.21 | $3,559.21 | $18,125.00 | $2,996,440.79 | $3,559.21 | $18,125.00 | Amortizing |
| 2 | Mar 1, 2026 | $2,996,440.79 | 7.250% | 30 | $21,684.21 | $3,580.71 | $18,103.50 | $2,992,860.08 | $7,139.92 | $36,228.50 | Amortizing |
| 3 | Apr 1, 2026 | $2,992,860.08 | 7.250% | 30 | $21,684.21 | $3,602.35 | $18,081.86 | $2,989,257.73 | $10,742.27 | $54,310.36 | Amortizing |
| 4 | May 1, 2026 | $2,989,257.73 | 7.250% | 30 | $21,684.21 | $3,624.11 | $18,060.10 | $2,985,633.62 | $14,366.38 | $72,370.46 | Amortizing |
| 5 | Jun 1, 2026 | $2,985,633.62 | 7.250% | 30 | $21,684.21 | $3,646.01 | $18,038.20 | $2,981,987.61 | $18,012.39 | $90,408.66 | Amortizing |
| 6 | Jul 1, 2026 | $2,981,987.61 | 7.250% | 30 | $21,684.21 | $3,668.03 | $18,016.18 | $2,978,319.58 | $21,680.42 | $108,424.84 | Amortizing |
| 7 | Aug 1, 2026 | $2,978,319.58 | 7.250% | 30 | $21,684.21 | $3,690.20 | $17,994.01 | $2,974,629.38 | $25,370.62 | $126,418.85 | Amortizing |
| 8 | Sep 1, 2026 | $2,974,629.38 | 7.250% | 30 | $21,684.21 | $3,712.49 | $17,971.72 | $2,970,916.89 | $29,083.11 | $144,390.57 | Amortizing |
| 9 | Oct 1, 2026 | $2,970,916.89 | 7.250% | 30 | $21,684.21 | $3,734.92 | $17,949.29 | $2,967,181.97 | $32,818.03 | $162,339.86 | Amortizing |
| 10 | Nov 1, 2026 | $2,967,181.97 | 7.250% | 30 | $21,684.21 | $3,757.49 | $17,926.72 | $2,963,424.48 | $36,575.52 | $180,266.58 | Amortizing |
| 11 | Dec 1, 2026 | $2,963,424.48 | 7.250% | 30 | $21,684.21 | $3,780.19 | $17,904.02 | $2,959,644.29 | $40,355.71 | $198,170.60 | Amortizing |
| 12 | Jan 1, 2027 | $2,959,644.29 | 7.250% | 30 | $21,684.21 | $3,803.03 | $17,881.18 | $2,955,841.26 | $44,158.74 | $216,051.78 | Amortizing |
| 13 | Feb 1, 2027 | $2,955,841.26 | 7.250% | 30 | $21,684.21 | $3,826.00 | $17,858.21 | $2,952,015.26 | $47,984.74 | $233,909.99 | Amortizing |
| 14 | Mar 1, 2027 | $2,952,015.26 | 7.250% | 30 | $21,684.21 | $3,849.12 | $17,835.09 | $2,948,166.14 | $51,833.86 | $251,745.08 | Amortizing |
| 15 | Apr 1, 2027 | $2,948,166.14 | 7.250% | 30 | $21,684.21 | $3,872.37 | $17,811.84 | $2,944,293.77 | $55,706.23 | $269,556.92 | Amortizing |
| 16 | May 1, 2027 | $2,944,293.77 | 7.250% | 30 | $21,684.21 | $3,895.77 | $17,788.44 | $2,940,398.00 | $59,602.00 | $287,345.36 | Amortizing |
| 17 | Jun 1, 2027 | $2,940,398.00 | 7.250% | 30 | $21,684.21 | $3,919.31 | $17,764.90 | $2,936,478.69 | $63,521.31 | $305,110.26 | Amortizing |
| 18 | Jul 1, 2027 | $2,936,478.69 | 7.250% | 30 | $21,684.21 | $3,942.98 | $17,741.23 | $2,932,535.71 | $67,464.29 | $322,851.49 | Amortizing |
| 19 | Aug 1, 2027 | $2,932,535.71 | 7.250% | 30 | $21,684.21 | $3,966.81 | $17,717.40 | $2,928,568.90 | $71,431.10 | $340,568.89 | Amortizing |
| 20 | Sep 1, 2027 | $2,928,568.90 | 7.250% | 30 | $21,684.21 | $3,990.77 | $17,693.44 | $2,924,578.13 | $75,421.87 | $358,262.33 | Amortizing |
| 21 | Oct 1, 2027 | $2,924,578.13 | 7.250% | 30 | $21,684.21 | $4,014.88 | $17,669.33 | $2,920,563.25 | $79,436.75 | $375,931.66 | Amortizing |
| 22 | Nov 1, 2027 | $2,920,563.25 | 7.250% | 30 | $21,684.21 | $4,039.14 | $17,645.07 | $2,916,524.11 | $83,475.89 | $393,576.73 | Amortizing |
| 23 | Dec 1, 2027 | $2,916,524.11 | 7.250% | 30 | $21,684.21 | $4,063.54 | $17,620.67 | $2,912,460.57 | $87,539.43 | $411,197.40 | Amortizing |
| 24 | Jan 1, 2028 | $2,912,460.57 | 7.250% | 30 | $21,684.21 | $4,088.09 | $17,596.12 | $2,908,372.48 | $91,627.52 | $428,793.52 | Amortizing |
Showing the first 24 of 60 periods. CSV export and print always include every period.
Coverage Requirement — Policy Source
Where the applicable minimum comes from, and why it is the one that controls.
| Policy | Section | Board / Effective | Rule Type | Applicable | Deal | Status |
|---|---|---|---|---|---|---|
| Commercial Loan Policycontrols | §1.2.1 | 07/2024 | Policy Minimum | 1.25x | 1.32x | Above test value |
| Commercial Loan Policy | Capacity | 07/2024 | Guideline | 1.20x | 1.32x | Above test value |
| Commercial Loan Policy | §1.2.1.1 | 07/2024 | Policy Minimum | — | — | — |
- Commercial Loan Policy §1.2.1 — “Minimum debt coverage requirements should not be less than 1.25x measured at the business level when applying maximum applicable amortization periods to the full loan commitment.” Mandatory minimum. Controls the general Commercial Loan Policy case.
- Commercial Loan Policy Capacity — “In most cases cash flow should exceed debt service by 20%, or DSCR should be 1.20x or greater. The Policy expressly describes this as a guideline.” A guideline in the Policy’s own words. Reported for visibility; it never lowers the §1.2.1 minimum and is never the controlling requirement.
- Commercial Loan Policy §1.2.1.1 — “When another applicable Policy has a different DSCR requirement, the more conservative applicable DSCR will be used.” The rule applied to reconcile the candidates above.
No product-specific Policy requirement is configured, so the general Commercial Loan Policy §1.2.1 minimum controls.
Policy Source Inventory
Verified Solera policy requirements by product. Reference only — none of these is applied until a loan product is selected.
Not applied. Every requirement below is product-specific, and no product is selected in the Phase 1 calculator — so none of them is the applicable requirement yet. Applicable Solera policy values will be automatically selected by loan product in the Policy Engine.
- Commercial Loan PolicyBoard Approval Date: 07/2024
- General Policy StatementBoard Approval Date: 07/2024
- Commercial Income Property PolicyBoard Approval Date: 10-24-2023
- Construction and Land Acquisition & Development Loan PolicyBoard Approval Date: 10/20/2022
- Appraisal and Evaluation PolicyBoard Approval Date: 10-24-2023
- Loan Concentration PolicyCurrent Approval Date: January 2024
- General Credit PolicyBoard Approval Date: POLICY SOURCE REQUIRED
Dates are recorded verbatim as each document states them. A date visible in a filename is not a date the policy states, and is never promoted here.
38 requirements across 10 product types, drawn from 7 policy documents. Expand to read them.
Still unsourced
- Records-retention period — BANK RECORDS-RETENTION POLICY REQUIRED. The library states no duration, and a number of years is not guessable.
- Approval date — General Credit Policy: POLICY SOURCE REQUIRED.
- SECTION NOT CONFIRMED for 5 requirements. The rule is verified; the section reference is not, and is left blank rather than guessed.
- Credit appetite level — no uploaded policy states one. The Phase 1 preferred DSCR is a configurable preference, never Board policy.
STRESS REQUIRED BY POLICY WHERE APPLICABLE
MAGNITUDE = CONFIGURABLE / CREDIT JUDGMENT UNLESS SPECIFIC POLICY STATES OTHERWISE
Two different facts. Stress analysis is required by policy in several circumstances, so it is not an unsourced feature; no policy states a Bank-wide shock magnitude, so the magnitude is credit judgment and is printed on the output rather than presented as a standard.
Audit Trail
Rent treatments and policy determinations, recorded for review.
C-01 — resolved from policy wording
1.25x appliesWhich Commercial Loan Policy provision controls the minimum debt service coverage requirement?
- 1.25x Commercial Loan Policy §1.2.1 · Policy Minimum · controls
- 1.20x Commercial Loan Policy Capacity · Guideline
§1.2.1 states a mandatory minimum; the Capacity section states a guideline. The policy hierarchy resolves in favour of the explicit minimum, so 1.25x controls and 1.20x is reported as the guideline it is.
Scope: Resolved for the GENERAL Commercial Loan Policy case only. §1.2.1.1 requires the more conservative applicable DSCR where a specific product Policy states a different requirement, so this is not a universal Solera DSCR for every product.
APPLICATION CONTROL. The rent reconciliation is an application control implementing the CLP §12.3.2 calculation methodology. No current Solera policy requires a second reviewer to clear it, and this tool does not represent one as a Bank requirement. A preparer who identifies the duplicated amount, selects the treatment, documents the reason and confirms the result has cleared it. Second-level approval, if Credit Administration later requires it, arrives through workflow configuration.
General Credit Policy requires pertinent loan data to be supported by written documentation and policy exceptions to be justified in writing in the credit file. Before this system handles real borrower financial information, persistent audit history is required for: financial adjustments, rent eliminations, policy overrides, credit-appetite overrides, rate overrides, dealfit overrides, source-number changes, underwriting assumptions. Phase 1 remains in-session because no real borrower data is used.
Retention period: BANK RECORDS-RETENTION POLICY REQUIRED
The uploaded policies do not state a retention duration. A number of years is not guessable, and a guessed one would look verified.
Loan Summary
The request as structured, for handoff to the credit analyst.
Enter either; the other is derived.
Loan Summary - (Enter Business Name)
Entered · CalculatedRequest
- Borrowerentered
- — to be entered
- Ownershipentered
- — to be entered
- Co-Borrowerentered
- — to be entered
- Ownershipentered
- — to be entered
- Guarantor(s)entered
- — to be entered
- Loan Amountcalc
- $3,000,000
- Termcalc
- 5 years (60 mos)
- Ratecalc
- 7.250%
- Payments (P&I, I/O, Amortization)calc
- P&I
- Amortizationcalc
- 25 years (300 mos)
- Collateral Infoentered
- — to be entered
- Collateral Valuecalc
- $3,800,000
- Fee Typeentered
- — to be entered
- Fee Amountentered
- — to be entered
- Fee %entered
- — to be entered
Deposit and Other Relationship
CLP §1.12 — reported alongside aggregate exposure. Relationship value never enters repayment capacity.
- Existing Depositsentered
- — to be entered
- Expected New Depositsentered
- — to be entered
- Total Deposit Relationshipentered
- — to be entered
- NIB Depositsentered
- — to be entered
- Interest-Bearing Depositsentered
- — to be entered
- Deposit Rateentered
- 0.00%
- Treasury Relationshipentered
- — to be entered
- Other Relationship Informationentered
Supporting Credit Metrics
- Monthly Paymentcalc
- $21,684.21
- Proposed Annual Debt Servicecalc
- $260,211
- Surviving Existing Debt Servicecalc
- $321,001
- Pro Forma Global Debt Servicecalc
- $581,212
- Property DSCRcalc
- 1.33x
- Business DSCRcalc
- 1.12x
- Underwriting Global DSCRcalc
- 1.32x
- Covenant Global DSCRcalc
- 1.40x
- LTVcalc
- 78.9%
- LTCcalc
- 83.3%
- Debt Yieldcalc
- 11.5%
- Balloon at Maturitycalc
- $2,743,530
- Equity Requirementcalc
- $600,000
Incomplete — still to enter: Borrower, Ownership, Co-Borrower, Ownership, Guarantor(s), Collateral Info, Fee Type, Fee Amount, Fee %, Existing Deposits, Expected New Deposits, Total Deposit Relationship, NIB Deposits, Interest-Bearing Deposits, Treasury Relationship. The summary will export with these blank.
Underwriting Assumptions
Editable test values. Not credit policy.
These thresholds are configurable Phase 1 test values, not credit policy. Solera policy does state advance rates, coverage minimums, amortization and maturity limits — by product, in the Policy Source Inventory below — but no product is selected here, so none of them is the applicable requirement yet. Applicable Solera policy values will be automatically selected by loan product in the Policy Engine.
The coverage the Structure It panel sizes the loan to.
Applied to the stressed DSCR card.
What Changed
How your last few edits moved the credit metrics.
Change an input — the loan amount, the rate, the amortization period — and this panel will explain what it did to debt service, coverage, and leverage.
Structure Summary
How This Was Calculated
Every figure on screen comes from a deterministic function, shown here with its inputs.
Total existing annual debt service − Debt service repaid at closing
$415,194 − $94,193
= $321,001
Surviving existing debt service + Proposed loan debt service
$321,001 + $260,211
= $581,212
Qualifying cash flow ÷ Applicable pro forma annual debt service
$765,000 ÷ $581,212
= 1.32x
Available cash flow ÷ Required DSCR
$765,000 ÷ 1.25x
= $612,000
Maximum total annual debt service − Surviving existing debt service
$612,000 − $321,001
= $290,999
Present value of the available capacity over the amortization period
PMT × (1 − (1 + i)⁻ⁿ) ÷ i
= $3,354,964
Total project cost − Loan amount
= $600,000
Commercial Banking Glossary
Every acronym used in this tool, with a worked example.
Measures how much qualifying cash flow is available to cover required annual debt payments. Expressed as a multiple: 1.25x means cash flow is 1.25 times the annual debt service.
Why a banker caresIt is the single most direct measure of whether a deal can pay its own debt. A DSCR below 1.00x means the property or business does not generate enough cash to make its payments without outside support. Coverage above 1.00x is the cushion that absorbs vacancy, margin compression, or a rate reset.
FormulaDSCR = Cash Flow Available for Debt Service / Annual Debt Service
Example$150,000 cash flow / $100,000 debt service = 1.50x DSCR