A multifamily DSCR loan qualifies on the property’s rent roll — not your tax returns — for apartment buildings of 5+ units and mixed-use properties.
Above four units, most residential lenders stop and most banks slow down. Our multifamily and mixed-use DSCR programs fill that gap: the property’s cash flow carries the qualification, your personal income stays out of the file, and the loan closes in your LLC. It’s permanent, long-term financing for the small-to-mid balance apartment and mixed-use space — the most heavily financed property type in commercial real estate. Business-purpose, non-owner-occupied.
What you can finance
- Up to ~75% LTV on purchase and rate/term refinance; cash-out available at slightly reduced leverage.
- Loan amounts to $3,500,000 on select programs.
- DSCR from 1.0 — and below-1.0 options on select programs for properties still growing into their rents.
- Credit from the mid-500s on select programs; no-score scenarios considered.
- 5+ unit multifamily and mixed-use — up to ~25 units on certain programs.
- Long-term fixed and interest-only structures; title in an LLC or entity is standard.
- Purchase, refinance, and cash-out — including exits from bridge and construction loans.
How DSCR qualification works on 5+ units
DSCR — debt service coverage ratio — is the property’s income divided by its proposed loan payment. At 1.0, the property pays for itself; above 1.0, it cash-flows. On 5+ unit and mixed-use property, we underwrite the rent roll and operating expenses rather than your personal DTI, which means self-employed borrowers, investors with complex returns, and owners scaling multiple buildings qualify on the strength of the asset. If you’re familiar with DSCR loans on 1–4 unit rentals, this is the same logic applied to larger buildings.
Below-1.0 DSCR: financing the turnaround
Not every good building cash-flows on day one. Select programs accept DSCR below 1.0 at adjusted leverage — useful for properties with below-market rents, units coming off renovation, or lease-up still in progress. When the property needs more than a lower ratio — significant vacancy or a heavier reposition — a commercial bridge loan carries it to stabilization, then this program becomes the permanent exit.
Who it’s for
- Investors moving up from 1–4 units to their first apartment building.
- Owners refinancing maturing debt on stabilized 5+ unit property.
- Buyers of mixed-use buildings — residential over retail, live/work, urban infill.
- Sponsors taking cash-out of stabilized buildings to fund the next acquisition.
Frequently asked questions
What is a multifamily DSCR loan?
It’s a business-purpose loan on a 5+ unit residential or mixed-use property where qualification is based on the property’s debt service coverage ratio — its income against its payment — instead of your personal income and tax returns.
How many units can the property have?
These programs cover 5+ unit multifamily, with certain programs extending to roughly 25 units, plus mixed-use buildings. Larger assets and balances route to our small-balance commercial desk.
What DSCR do I need to qualify?
Standard programs price best at 1.0 and above, but select programs accept ratios below 1.0 at adjusted leverage — a fit for buildings with rents still catching up to market.
Do mixed-use properties qualify?
Yes — buildings that combine residential units with commercial space, such as apartments over storefronts, are eligible on these programs.
Can I close in an LLC?
Yes — entity vesting is standard on business-purpose multifamily loans, and it’s how most investors hold 5+ unit property.
What if my building isn’t stabilized yet?
Sub-1.0 DSCR options handle modest shortfalls. For heavier lifts — significant vacancy, renovation in progress — a commercial bridge loan carries the property to stabilization, and this program serves as the planned permanent exit.