Debt Service (Huh!)

What is debt service? I have ran across that in alot of listings. Ex. $54,850 available for debt service.

Also, humor me, when dealing with commercial units like on a 20+ & up will banks usually do a 75% LTV and allow a SCB for 25% which elimiates a large or $0 downpayment from the buyer if the buyer has a good FICO? Has anyone experienced that?

Comments(2)

  • NancyChadwick25th September, 2004

    Debt service is the mortgage. Sometimes the monthly principal and interest payment is referred to as debt service.

  • jripeastwest7th December, 2004

    Thats funny.. Don't go by what they say. Your terms are always different from what the listing says. You might for instance use a larger down, or maybe even have the owner carry some paper.

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