Finance 2-8 unit multifamily properties based on rental income — no personal income documentation required.
Multifamily properties — duplexes, triplexes, quads, and small apartment buildings — are among the most powerful wealth-building vehicles in real estate. DSCR loans make it easier than ever to finance these properties by qualifying on the combined rental income of all units rather than your personal income. Whether you are buying your first duplex or adding an 8-unit to your portfolio, we have DSCR programs designed for multifamily investors.
Duplexes, triplexes, and quads are the most common multifamily DSCR deals. The combined rent from all units is used to calculate the DSCR. Even if one unit is vacant, the income from the other units can still support the loan. These properties are widely available and offer strong cash flow potential.
5-8 unit properties are available on select DSCR programs. These are considered commercial multifamily by some lenders but remain eligible for DSCR financing through our wholesale network. Underwriting focuses on the property net operating income (NOI) and debt service coverage.
The DSCR for a multifamily property is calculated using the combined gross rent from all units divided by the total monthly PITIA. A 4-unit property generating $6,000/month in rent with a $4,500 PITIA has a DSCR of 1.33x — well above most lender minimums.
Just like single-family DSCR loans, multifamily DSCR loans require no personal income documentation. No W-2s, tax returns, or pay stubs. Qualification is based entirely on the property rental income. This is ideal for self-employed investors and those with complex income situations.
Multifamily DSCR loans can close in the name of an LLC, LP, corporation, or trust. This is ideal for investors who want to hold multifamily properties in entities for liability protection and portfolio organization.
Some mixed-use properties (residential units above commercial space) may qualify for DSCR financing depending on the lender. The residential rental income is typically used for DSCR calculation. Contact us to discuss your specific property.
DSCR loans are available for rate-and-term refinances and cash-out refinances on multifamily properties. Cash-out refinances allow you to pull equity from an existing multifamily property to fund your next acquisition — a powerful portfolio-building strategy.
Lenders use market rent (from the appraisal rent schedule) or actual rent — whichever is lower — for DSCR calculation. Vacancy factors may be applied. We will help you structure your deal to maximize your qualifying DSCR.
Yes. 2-4 unit properties (duplexes, triplexes, quads) are among the most common DSCR loan deals. The combined rent from all units is used to calculate the DSCR. These properties are widely available and offer strong cash flow potential.
DSCR = Combined Gross Monthly Rent (all units) divided by Monthly PITIA. For example: a 4-unit property with $6,000 combined rent and $4,500 PITIA has a DSCR of 1.33x.
Yes, on select programs. 5-8 unit properties are available through our wholesale lender network. Underwriting focuses on the property net operating income and debt service coverage. Contact us to discuss your specific deal.
Yes. DSCR loans — including multifamily — can close in the name of an LLC, LP, corporation, or trust. No personal guarantee is required on select programs.
Lenders use market rent from the appraisal rent schedule or actual rent — whichever is lower. Some lenders apply a vacancy factor. Even with one vacant unit, the income from the other units may still support a qualifying DSCR. We will help you structure the deal.
Talk to Steve or Zach today for a free consultation, no credit pull required.