UNDERWRITING GLOSSARY
DSRA
Debt Service Reserve Account
A restricted account maintained to cover scheduled debt payments if cash flow is insufficient.
What does DSRA mean?
A restricted account maintained to cover scheduled debt payments if cash flow is insufficient. Professionals may calculate, document or apply this concept differently depending on the transaction, accounting method, lender policy and governing documents. Borrowers should confirm the precise definition used in any term sheet or agreement.
DSRA in context
A project deposits six months of payments into a DSRA at closing.
Why it matters in financing
DSRA can influence how a lender, investor or advisor evaluates risk, pricing, structure, repayment capacity or transaction economics. It should be considered together with the complete financial picture rather than used alone.
Related underwriting terms
Educational information only. This definition is general, may not match a particular lender or contract, and is not financial, accounting, tax or legal advice.