Debt-service coverage ratio (DSCR) ... meaning that you can cover your current debt twice over. Later, we’ll explain what this means — and how you can work on increasing your DSCR if need be.

The debt-service coverage ratio (DSCR) measures the cash flow available to pay current debt obligations. Many lenders set minimum DSCR requirements for loan approval.

Debt service coverage ratio (DSCR) measures your business’s debt obligations against its cash flow, and indicates your business’s ability to cover its existing debt obligations.

For example, let’s say that the debt to service ratio for a mortgage is $100,000 annually and the lender wants a debt service coverage of 1.2.

The gross debt service ratio may also be referred to as the housing expense ratio or the front-end ratio. Generally, borrowers should strive for a gross debt service ratio of 28% or less. Key ...

What to do if your debt-to-income ratio is too high. A high DTI ratio is a cause for concern because it can limit your borrowing options and lead to strain on your budget.