The Debt-to-Income Ratio (DTI) measures a borrower’s ability to manage monthly payments and repay debts. This ratio compares an individual's gross income to their combined housing and nonhousing expenses.
The Loan Coverage Ratio (LCR), also known as the Debt Coverage Ratio (DCR), is a key financial metric used to assess a property's ability to generate enough income to cover its debt obligations. It is widely used by lenders to evaluate the financial health and viability of real estate investments.
The Loan-to-Value (LTV) ratio is a critical financial metric in real estate and lending that compares the loan amount to the appraised value of the property, influencing mortgage terms, interest rates, and approval processes.
