How CMBS Conduit Lenders Size a Loan
Every CMBS quote is the minimum of three independent constraints: a DSCR floor, an LTV cap, and a debt yield floor. The lender computes each constraint, picks the smallest loan amount, and that's the quote. There is no negotiating which constraint "wins" — math wins.
Typical Conduit Floors by Asset Class
- Multifamily: 1.25x DSCR · 75% LTV · 7.5% debt yield
- Office / Retail / Industrial: 1.25x DSCR · 65–70% LTV · 8–9% debt yield
- Hospitality (full-service): 1.40x DSCR · 65% LTV · 11–12% debt yield
- Self-Storage: 1.30x DSCR · 70% LTV · 9% debt yield
Which Constraint Usually Wins?
In low-rate environments (2020–2022), DSCR was rarely binding — interest rates were low enough that 65% LTV always sized smaller than 1.25x DSCR. In today's 6.5–7.5% rate environment, DSCR is binding on most deals. Debt yield is the ultimate backstop — it's the constraint lenders trust regardless of rates or cap rates.
Pair this with the Debt Yield Calculator, the DSCR Calculator, and the 2-Constraint Loan Sizer for the simplified version.
Rate & Lending DisclosureInterest rates, loan terms, leverage levels, and pricing references shown on this page are estimates only, based on current Florida commercial real estate market conditions and lender feedback as of the page's last update. They are
not commitments to lend, are not loan approvals or pre-qualifications, and do not guarantee any specific loan terms or that financing will be available to any particular borrower or property. Actual interest rates, fees, leverage, amortization, prepayment terms, and other loan terms depend on borrower qualifications (credit, net worth, liquidity, experience), property characteristics, lender-specific underwriting requirements, third-party reports, and market conditions at the time of application. All loans are subject to lender credit approval, underwriting, and applicable federal, state, and local lending regulations. Linton Global Solutions is a Florida-licensed commercial real estate brokerage (FL Broker #BK703722); it is
not a lender. Financing is sourced through third-party lender relationships, and final loan terms are determined by the originating lender. This page does not constitute consumer credit advertising under Federal Reserve Board
Regulation Z (12 CFR Part 1026) and is intended for informational purposes only for commercial real estate professionals, investors, and owners considering commercial mortgage financing. Past loan terms or transactions do not guarantee future results.