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5 to 8 unit DSCR loans
Finance small multifamily buildings beyond the 2 to 4 unit limit, qualified on rent.
Select DSCR programs finance 5 to 8 unit residential properties. Across our lender network, a purchase commonly goes up to about 75% LTV, with 65% to 70% on a refinance or cash-out, loans up to about $2 million to $3 million, a credit score starting around 660 to 700 and a DSCR of 1.0 or higher. Most programs want an experienced investor. There are no tax returns or income verification.
Beyond 2 to 4 units
Conventional loans stop at four units, and the next step up is usually commercial financing with different underwriting. Select DSCR programs fill that gap with residential-style investment loans for five to eight units, qualified on rent rather than your income. Investors use them for small apartment buildings, large townhome clusters and similar properties in Carolina cities.
The ranges across our network
| Item | What to expect on select programs |
|---|---|
| Loan-to-value | About 75% on a purchase, 65% to 70% on a refinance or cash-out |
| Loan amount | Up to about $2 million to $3 million |
| Credit score | Commonly starting around 660 to 700 |
| DSCR | 1.0 or higher is common |
| Experience | Most want an experienced investor. First-time investors are usually limited to 1 to 4 units |
| Property | Residential units, each typically with its own kitchen and bath. Minimum unit size and condition standards apply |
| Cash-out | Often available, with cash-in-hand limits that can reach $1 million on select programs |
| Documents | No tax returns, W-2s, pay stubs or income verification |
General guidance on programs available across our lender network. Not every program offers every feature, features often cannot be combined, and guidelines change without notice. Rates and terms are not shown here. This is not a commitment to lend.
How the DSCR is built on a multi-unit
The same formula applies: total monthly rent divided by PITIA. The lender uses the leases or the appraiser's rent schedule for all units, plus the single mortgage payment, taxes and insurance for the whole building. Some programs apply a vacancy factor on multi-unit properties, so ask how rent is counted on yours.
See the DSCR calculator, and for smaller buildings read about property requirements. We do not currently advertise mixed-use properties.
More DSCR programs
- First-time investor DSCR loans
- DSCR below 1.0 and no-ratio loans
- Airbnb and short-term rental DSCR loans
- Foreign national and ITIN DSCR loans
- Interest-only DSCR loans
- DSCR cash-out refinance
- DSCR loans for LLCs
- All DSCR loan programs at a glance
- DSCR loan requirements
- DSCR calculator
Ready to run your numbers?
Free quote. No credit pull to start. A licensed 1st Advantage Mortgage team member follows up.
Frequently asked questions
Can I get a DSCR loan on a 5 to 8 unit building?
Yes, on select programs. Five to eight unit residential properties are available across our network, commonly up to about 75% LTV on a purchase, 65% to 70% on a refinance or cash-out, with loans up to about $2 million to $3 million.
Is a 5 to 8 unit loan a residential or commercial loan?
On these programs it is a residential investment loan underwritten on the property's rent, not a commercial multifamily loan. That means DSCR underwriting and no income verification, but guidelines still differ from 1 to 4 unit loans.
Do I need experience to buy 5 to 8 units?
Most programs want an experienced investor, often with a history of owning rental property. First-time investors are usually limited to 1 to 4 units. See first-time investor DSCR loans.
What credit score do 5 to 8 unit DSCR loans need?
Select programs start around 660 to 700, with a DSCR of 1.0 or higher common. Terms vary by program and the property.
Free, no obligation
Get your DSCR loan quote
Tell us about the property. A licensed 1st Advantage Mortgage team member follows up with you. There is no fee to ask and no credit pull to start.
- We compare specialist wholesale lenders instead of fitting you to one lender's menu
- Qualify on the property's rent, with no tax returns, W-2s or pay stubs on any program
- North Carolina and South Carolina investors, including first-time investors and LLC buyers
- Talk to a person: call 704-343-8681
Prefer to apply directly? Start an application with 1st Advantage Mortgage.