HUGE Haircut Cost! How DSCR Affects Your Loan Approval #shorts
17 Jul 2026 · 1 min
0:30
In this YouTube short, the speaker explains how a $38,400 "haircut"—a reduction applied to a property's projected income—affects commercial loan underwriting. After the haircut, the lender uses the adjusted figure of $275,200 and applies a Debt Service Coverage Ratio (DSCR) requirement of 1.25. By dividing $275,200 by 1.25, the lender determines the maximum annual mortgage payment the property can support, which is $220,160. The speaker notes that a more detailed DSCR breakdown will be covered in a subsequent video.
