The debt service coverage ratio (DSCR) is a financial ratio that is used to determine whether a loan is affordable. The ratio is calculated by dividing the loan amount by the property’s net operating income (NOI). The DSCR is an important factor that lenders consider when determining whether to approve a loan. A high DSCR indicates that the loan is affordable and that the borrower is likely to be able to make the required loan payments. A low DSCR, on the other hand, may indicate that the borrower will have difficulty making the loan payments. The DSCR is just one factor that lenders consider when making a loan decision. Other factors include the borrower’s credit history, the loan-to-value ratio, and the property’s location.