Multifamily
A residential property with multiple rental units. 2–4 unit multifamily qualifies for standard DSCR financing at the same rates as SFR; 5+ unit multifamily requires specialty DSCR programs at 70–75% LTV.
Why it matters on a DSCR loan
The 2-4 unit versus 5-plus unit line is the single most important distinction in multifamily DSCR financing: stay at four units or below and you get residential treatment, cross to five and you enter specialty programs with lower leverage. Small multifamily also diversifies income within one loan — one vacant unit dents the DSCR instead of zeroing it out the way a vacant single-family does. When analyzing a deal, use the appraiser's per-unit market rents rather than the seller's rent roll, since inherited below-market leases are common and underwriters will notice.
Related terms
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DSCR Calculator Get a QuoteReviewed by Arin Baghermian, Broker Owner — NMLS #1220456 · Last reviewed July 2, 2026 · DSCR Capital Partners is a brand of UTM Financial, LLC (NMLS #2591548).