DSCR Loan for Multifamily (5+ Units & Apartment Buildings) 2026

DSCR loans aren’t just for single-family rentals — they’re one of the cleanest ways to finance multifamily property, from a duplex to a 5+ unit apartment building. You qualify on the building’s rent roll, not your personal income, so scaling into multifamily doesn’t require tax returns or DTI.

2–50+

Units

Up to 80%

Max LTV

$5M+

Loan Amounts

Income Docs

2–4 Unit vs. 5+ Unit Multifamily

There are two lanes, and the line falls at five units:

2–4 units (residential): duplexes, triplexes, and quadplexes are residential DSCR loans — the most common, with the best pricing and up to ~80% LTV.
5+ units (commercial-residential): small apartment buildings qualify on the property’s net rental income. Still no personal income docs, but expect slightly tighter LTV, larger reserves, and DSCR measured on the whole rent roll.

How Multifamily DSCR Works

The lender totals the building’s gross rents (actual leases or market rent), subtracts the full payment (PITIA), and checks the ratio. A building renting for $9,000/month with a $7,000 payment has a 1.29 DSCR. Strong, stabilized rent rolls price best; value-add buildings with vacancy may need a no-ratio structure or a bigger down payment.

What You Can Finance

Duplex, triplex, quadplex (2–4 unit)
5–10 unit apartment buildings
10+ unit and small apartment complexes
Mixed-use (residential over retail) on a case-by-case basis
Co-living and rent-by-the-room properties

Multifamily DSCR Requirements

Typical GuidelinesCredit: 660+ preferred for 5+ unit; 620+ on 2–4 unit
LTV: up to ~80% (2–4 unit), ~70–75% (5+ unit)
DSCR: 1.0–1.25 target; no-ratio available
Reserves: 6+ months PITIA common on larger buildings
Vesting: LLC standard

Building a multi-property portfolio? See our DSCR portfolio (blanket) loan and financing multiple properties guides.

Frequently Asked Questions

Can you get a DSCR loan on 5+ units? +

Yes. DSCR loans finance 5+ unit apartment buildings by qualifying on the building’s rent roll instead of your personal income. LTV is usually a bit lower than 2-4 unit and reserves are larger, but no tax returns are required.

Can I use a DSCR loan for an apartment building? +

Yes — small apartment buildings (5–10 units and up) are eligible. The lender underwrites the property’s net rental income and the DSCR across all units; financing closes in an LLC.

What are the DSCR requirements for multifamily? +

Generally 620+ credit for 2-4 unit and 660+ for 5+ unit, up to ~80% LTV (lower for 5+), a 1.0–1.25 DSCR target (no-ratio available), and 3–6+ months of reserves.

Is mixed-use property eligible for a DSCR loan? +

Often yes, case by case — typically residential-over-retail where the residential portion drives the income. The mix of residential vs. commercial square footage affects eligibility and LTV.

Finance Your Multifamily Deal

2-4 units to 50+. Qualify on the rent roll. 30-second check.

Check My Eligibility →

DSCR Loans for Multifamily: 2–4 Units, 5+ Units & Apartment Buildings