DSCR Rental Financing
Long-term capital for income-producing real estate.
DSCR financing provides eligible real estate investors with long-term capital structured primarily around property cash flow rather than conventional personal-income underwriting.
What is DSCR?
DSCR — the debt-service coverage ratio — measures the relationship between a property's net operating income and its debt obligations. Rather than underwriting a borrower's personal income in detail, DSCR financing evaluates whether the property's cash flow can support the debt.
This can make DSCR financing a practical path for investors building rental portfolios whose personal-income documentation may not reflect the full strength of the underlying assets.
DSCR Calculator
Estimate debt-service coverage
The debt-service coverage ratio (DSCR) compares a property's net operating income to its annual debt obligation. A ratio above 1.0x means the property's cash flow covers its debt; lenders generally look for meaningful coverage above that threshold.
This tool estimates the ratio from your inputs only. It does not publish a program minimum, rate, LTV, or credit requirement. Contact East Towne Capital for current DSCR program parameters.
Est. Net Operating Income
$—
Est. Annual Debt Service
$—
DSCR
—
Enter financing details
IMPORTANT FEE DISCLOSURE: East Towne Capital fees, where applicable, are separate from fees and origination charges imposed by the applicable capital source and from independent third-party transaction expenses. East Towne Capital's fee is due only upon the successful closing of your loan — no fee is payable in advance, and if your loan does not close, no East Towne Capital fee is due. Rates, fees, terms, leverage, and program availability vary by transaction and are subject to underwriting, due diligence, documentation, and final approval.
Relevant Situations
Where this capital applies
Qualification
Minimum Credit Score
Minimum Credit Score: 660+ (Mid-FICO)
Minimum credit score is one qualification factor. Additional underwriting requirements apply. Meeting the minimum credit score does not guarantee approval, terms, or funding.
Indicative Financing Parameters
Parameters structured around the transaction
Shown to illustrate the range East Towne Capital evaluates. Actual structure depends on the transaction, borrower, property, market, and current program availability.
Loan Amount
Core programs may begin around $75,000 and extend into multimillion-dollar transactions depending on program and property.
Property Types
Single-Family Investment, 2–4 Unit, Townhome, Eligible Condominium, PUD, and other eligible rental property.
Purpose
Purchase, rate-and-term refinance, and cash-out refinance where eligible.
Potential LTV
Purchase / Rate-Term: up to approximately 80% on qualifying transactions. Cash-Out: up to approximately 75% on qualifying transactions.
DSCR
Certain programs may be available around 1.05x. Requirements depend on program and transaction.
Credit
Minimum 660 mid-FICO on qualifying transactions. Higher or different requirements may apply.
Term
Potential 30-year structures. Fixed and adjustable structures may be available. Interest-only options may be available on qualifying transactions.
Financing parameters are indicative and subject to current program availability, borrower and property eligibility, underwriting, due diligence, documentation, market conditions, and applicable capital-source requirements. Information shown does not constitute an approval or commitment to lend.
Pricing + Cost Considerations
Look beyond the rate
The interest rate is one part of the economics of a transaction. East Towne Capital evaluates the complete financing structure so borrowers can understand the potential cost of capital before moving forward.
Interest Rate
Current pricing available by request.
East Towne Capital Fee
Varies by transaction and financing structure.
Capital Source Origination / Financing Fee
Separate from East Towne Capital's fee; varies by financing structure and applicable program.
Third-Party Costs
Transaction dependent.
Prepayment
Program dependent.
Extension Provisions
May apply depending upon financing structure.
Other Transaction Costs
May apply.
Long-Term Financing Cost Considerations
A lower interest rate does not automatically mean a lower total transaction cost. In addition to interest rate, consider the factors below.
East Towne Capital LLC fees, when applicable, are separate from any origination fees, points, underwriting fees, commitment fees, or other charges assessed by the applicable capital source. A transaction may also involve independent third-party expenses, including appraisal, legal, title, settlement, inspection, environmental, engineering, insurance, recording, and other due-diligence costs. East Towne Capital's fee is due only upon the successful closing of your loan. No fee is payable in advance, and if your loan does not close, no East Towne Capital fee is due. At closing, the applicable fee is disclosed and paid as part of the closing transaction and reflected on the applicable closing statement (HUD-1 or closing disclosure), separate from lender and third-party charges. The fees and expenses applicable to a particular transaction depend on the financing structure, property, borrower or sponsor, and program requirements and will be identified as applicable during the financing process. Rates, fees, terms, and program availability are subject to change. Information presented on this website does not constitute an approval or commitment to provide financing.
Fee Disclosure
FEE DISCLOSURE: East Towne Capital LLC may charge fees in connection with arranging, structuring, or facilitating a financing transaction. East Towne Capital's fees are separate from and in addition to any origination points, underwriting fees, commitment fees, administrative charges, or other financing costs imposed by the applicable capital source. East Towne Capital's fee is due only upon the successful closing of your loan; no fee is payable in advance, and if your loan does not close, no East Towne Capital fee is due. When applicable, the fee is collected at the closing table and disclosed and paid as part of the closing transaction on the settlement statement (HUD-1 or closing disclosure). Independent third-party costs, including appraisal, legal, title, settlement, insurance, environmental, engineering, inspection, recording, and other due-diligence expenses, may also apply. Actual rates, fees, costs, and financing terms vary by transaction and are subject to applicable program requirements, underwriting, due diligence, documentation, market conditions, and final approval. Nothing contained on this website constitutes an offer, approval, commitment to lend, or guarantee of financing.
Common Questions
Questions about dscr rental financing
What is DSCR?
The debt-service coverage ratio compares a property's net operating income to its annual debt service. A ratio above 1.0x means the property's cash flow covers its debt.
How is DSCR calculated?
Net operating income (rent less vacancy and operating expenses) divided by annual debt service. The estimator on this page illustrates the calculation from your inputs.
What rental income may be considered?
Market rent, in-place rent, and lease terms are reviewed as part of underwriting, subject to program requirements and appraisal.
Are purchase and refinance transactions available?
Yes — purchase, rate-and-term refinance, and cash-out refinance where eligible, subject to program and property qualification.
What determines maximum LTV?
Maximum LTV depends on the transaction type, property, borrower credit profile, and current program. Purchase and rate-term may reach approximately 80%; cash-out approximately 75% on qualifying transactions.
Put Your Rental Property to Work.
Explore financing for acquiring, refinancing, or holding income-producing rental properties with a structure built around your investment strategy.
Minimum Credit Score: 660+ (Mid-FICO)
No upfront East Towne Capital fee. Our fee is due only when your loan successfully closes. If your loan does not close, no East Towne Capital fee is due.