1. Property and transaction
Share the address, residential and commercial unit counts, property use, purchase price or estimated value, loan purpose, requested amount, current occupancy, and renovation status.
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Multifamily DSCR Financing
Finance an eligible 5-10-unit residential property or eligible 2-8-unit mixed-use property using supportable property cash flow. Request a property-specific review for a purchase, rate-and-term refinance, or cash-out refinance.
Investment property only. The borrower or immediate family may not occupy the property. Eligibility and terms vary by transaction, property, borrower, state, and current program guidelines.
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Loan overview
Multifamily DSCR loan details
Use this summary to compare the two current multifamily paths. The property type, unit count, transaction, loan amount, credit profile, and requested structure determine which path may apply. Current approved program materials and final underwriting control.
| Property scope | Current options cover 5-8 residential units or 2-8 mixed-use units under one program path, and 5-10 residential units or 2-8 mixed-use units under another. For a 2-4-unit residential property, review the separate 1-4-unit DSCR program. |
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| Purposes and loan amounts | Eligible purposes are purchase, rate-and-term refinance, and cash-out refinance. The 5-8-unit path ranges from $400,000 to $2 million. The 5-10-unit path ranges from $250,000 to $3 million. Loans above $400,000 on the 5-10-unit path receive a 5 percentage-point loan-to-value reduction. Current program limits and complete underwriting review apply. |
| Maximum loan-to-value | For the 5-8-unit path, purchase may reach 75% through $1.5 million and 70% through $2 million. Rate-and-term refinance may reach 70%, and cash-out refinance may reach 65%. For the 5-10-unit path, the listed maximum is 75% through $400,000 and 70% above $400,000 for purchase, rate-and-term refinance, and cash-out refinance. These are ceilings, not guaranteed offers, and lower limits may apply. |
| DSCR and borrower profile | Both current paths require a minimum debt service coverage ratio of 1.00. The 5-8-unit path begins at a 700 minimum credit score; the 5-10-unit path begins at 720. First-time investors are ineligible for the 5-8-unit path, and first-time homebuyers are ineligible for the 5-10-unit path. Experience, credit, liquidity, and other current requirements are reviewed together. |
| Income and vacancy review | Leased residential units generally use the lower of market rent or the lease amount. Vacant units qualify at 75% of market rent and must be lease-ready. Vacancy limits depend on the program path and unit count. Mixed-use properties are limited to eligible commercial uses, and commercial income must remain below 50% of total property income. Applicable management fees reduce qualifying rent. |
| Property and appraisal | A full interior inspection is required for all units. The review considers condition, deferred maintenance, environmental or safety concerns, unit size, acreage, building configuration, market support, rent roll, income and expenses, and appraiser documentation. Some loans above $2 million require a second appraisal, depending on the appraisal form and applicable program path. |
| Reserves and cash-out | Reserve requirements generally begin at 6 months of the applicable housing payment and rise to 9 or 12 months at higher loan amounts. Cash-out is capped at $1 million. Whether cash-out proceeds may satisfy reserves depends on the program path. Down payment or equity, cash to close, reserves, and post-closing liquidity remain separate requirements. |
| Available terms and pricing | Depending on the applicable path, available structures may include 15-, 30-, or 40-year fixed terms; 5/6, 7/6, or 10/6 adjustable-rate terms; and eligible interest-only options. Prepayment terms and state restrictions may apply. Request a current scenario review for available terms, rates, and pricing. |
These are selected program details, not a rate quote, approval, commitment, or complete statement of eligibility. Terms vary by transaction, property, borrower, state, and current program guidelines. Final underwriting and approved documents control.
Financing for larger multifamily properties
Multifamily debt service coverage ratio (DSCR) financing evaluates an eligible investment property's supportable income against its proposed housing payment. Current consumer-facing options cover 5-10 residential units and 2-8 mixed-use units, with the applicable path depending on unit count and property use. Both paths require a minimum DSCR of 1.00. Property, valuation, vacancy, documentation, credit, liquidity, and current underwriting requirements still apply.
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How multifamily DSCR financing works
Multifamily DSCR financing is designed for eligible business-purpose investment properties. Qualification focuses on property cash flow, although borrower credit, liquidity, experience, property condition, valuation, title, insurance, and transaction details remain part of the review. For 5-8 residential units or eligible 2-8-unit mixed-use properties, one current path begins at a 1.00 DSCR and a 700 minimum credit score. A second path covers 5-10 residential units or eligible 2-8-unit mixed-use properties, also beginning at a 1.00 DSCR, with a 720 minimum credit score. These are threshold requirements, not approval guarantees. All current program requirements and final underwriting apply.
Scenario review
What to prepare for a multifamily loan review
A complete scenario helps the team identify the applicable 5-8-unit or 5-10-unit path and the documentation needed for the property.
2. Rent and property income
Provide the current rent roll, leases, market-rent support, recent rent receipts when applicable, vacancy details, and available operating-income and expense information.
3. Borrower and eligibility details
Be ready to discuss ownership, credit, liquidity, reserves, investment experience, appraisal, property condition, title, insurance, and any entity documentation.
Ready for a multifamily scenario review?
Send the property and transaction details to discuss current eligibility, documentation, and available structures with theLender.
Get an Estimate
Share the property, unit count, transaction, and requested loan details for a scenario review. A member of theLender team can discuss current eligibility, documentation, and available structures. This is not an approval, commitment, or rate quote.
Multifamily DSCR
Please answer a few questions and submit this form to request a multifamily loan estimate.
Frequently Asked Questions
1. What properties qualify for Multifamily DSCR financing?
Current options cover eligible 5-10-unit residential properties and eligible 2-8-unit mixed-use properties. The applicable program path depends on unit count, property use, transaction, loan amount, borrower profile, state, and current guidelines. A 2-4-unit residential property generally belongs in the separate 1-4-unit DSCR program.
2. How is DSCR calculated for a multifamily property?
Debt service coverage ratio is based on eligible property income divided by the applicable housing payment. Both current multifamily paths require a minimum DSCR of 1.00. Leased units generally use the lower of market rent or the lease amount. Vacant units may qualify at 75% of market rent, subject to vacancy limits, lease-ready condition, management-fee adjustments, documentation, and final underwriting.
3. What is the minimum loan amount for Multifamily DSCR?
The 5-8-unit path currently ranges from $400,000 to $2 million. The 5-10-unit path currently ranges from $250,000 to $3 million. The available amount depends on property type, unit count, DSCR, valuation, transaction, credit, liquidity, leverage, and current program requirements. Stated limits are not guaranteed offers.
4. Can a mixed-use property qualify?
Eligible 2-8-unit mixed-use properties may qualify. Current rules limit commercial use to eligible categories and require commercial income to remain below 50% of total property income. Commercial-unit counts, commercial floor area, occupancy, valuation, and other property requirements also apply. A property-specific review is required.
5. What should I prepare for a Multifamily DSCR review?
Prepare the property address, unit mix, transaction and requested loan amount, current rent roll, leases, market-rent support, vacancy details, income and expense information, and available appraisal or property-condition details. Be ready to discuss credit, liquidity, reserves, experience, ownership, title, insurance, and entity documents. Required items vary by scenario and current guidelines.