ASC Debt and Financing Analysis Flashcards
6 cards from real ASC practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 6 ASC Debt and Financing Analysis flashcards as text
What does DSCR stand for in ARGUS debt modeling?
Answer: Debt Service Coverage Ratio
DSCR stands for Debt Service Coverage Ratio, which measures a property's ability to cover its debt obligations from NOI.
In ARGUS, which metric represents the maximum loan amount as a percentage of property value?
Answer: LTV
LTV (Loan-to-Value) ratio represents the maximum loan amount as a percentage of the property's appraised value.
When modeling a floating rate loan in ARGUS, which input is used to set the base interest rate index?
Answer: Index rate
The index rate (such as SOFR or Treasury) serves as the base benchmark for floating rate loans in ARGUS, to which a spread is added.
In ARGUS, what happens to the loan balance when you model an interest-only loan period?
Answer: It remains constant with no principal reduction
During an interest-only period, borrowers pay only interest so the principal balance remains unchanged throughout that phase.
Which ARGUS feature allows you to model multiple loan tranches on a single property?
Answer: Debt tab with multiple financing layers
ARGUS allows stacking multiple debt layers (senior, mezzanine, etc.) through the Debt tab's financing structure inputs.
What is a balloon payment in the context of ARGUS loan modeling?
Answer: The lump sum principal due at loan maturity
A balloon payment is the remaining principal balance due as a lump sum at the end of the loan term.