What Is a 5–10 Unit DSCR Loan?

How a 5-10 Unit DSCR Loan Works

Conventional and standard residential financing generally stops at 4 units. Once a property hits 5 units, it's classified as small balance multifamily — and most banks route it into commercial underwriting: full-doc financials, global cash flow analysis, and a much slower process.

DSCR = Monthly Rental Income ÷ Monthly Debt (PITIA)

PITIA = Principal · Interest · Taxes · Insurance · HOA

We keep 5–10 unit deals inside the same DSCR framework as a single-family rental — the loan is sized off the property's own leases, not your personal tax returns or a global cash flow analysis across every entity you own.

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New to DSCR Loans?

Start with the basics first

Learn how DSCR loans work before diving into multifamily-specific requirements.

What Is a DSCR Loan? →

              5–10 units
              Small balance multifamily, in and out of state
            

              Lease based
              Qualifies off in-place leases, same as any DSCR loan
            

              Up to 75% LTV
              75% purchase, 70% cash-out refi
            

              Min. DSCR 0.75
              Best rates at 1.20–1.25 DSCR
            

              Short-term rentals allowed
              Airbnb & VRBO properties eligible
            

              Close in as little as 14 days
              Faster than a commercial bank timeline
            

What 5–10 Unit DSCR Underwriting Looks At

The same DSCR file as a 1-4 unit property — no personal income verification, no extra documentation.

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Current leases — Same documentation as any DSCR loan; no rent roll or income & expense statement required.

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Minimum DSCR: 0.75 — Best pricing and leverage at 1.20–1.25.

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Minimum credit score: 680

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No tax returns or W-2s — The property qualifies, not you.

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LLC or entity vesting — Like all of our loans, 5-10 unit deals close in a business entity, not an individual's name.

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Up to 75% LTV — 75% purchase, 70% cash-out.

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Foreign nationals eligible — No U.S. credit or income history required.

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Short-term rentals allowed — Airbnb & VRBO properties eligible.

Commercial Loan vs. 5–10 Unit DSCR Loan

Our Commercial Loan program is a non-QM commercial product with three documentation paths — Tax Return (full financials), Lite Doc (bank statements), and No Doc (no income documentation). Investor/income-producing deals are underwritten off the property's cash flow and the borrower's chosen doc tier, must clear a minimum 1.10 DSCR, and require at least 75% occupancy at closing. It also covers owner-occupied purchases, evaluated on the business itself rather than the property's rental income.

A 5–10 unit DSCR loan skips the doc tiers and the business-side underwriting entirely. We qualify the deal on the property's leases alone — no personal or business financials, no global cash flow analysis, and no owner-occupied option. DSCR underwriting also doesn't require the extras a commercial file typically calls for, like a third-party property/vacancy management company, replacement reserves, or a debt service reserve account. That narrower scope is what lets a 5–10 unit DSCR loan close faster than a commercial loan.

If your property doesn't cash-flow well enough for DSCR, or you're purchasing a facility to occupy yourself, our Commercial Loan program may be the better fit.

Requirement	Commercial Loan	5–10 Unit DSCR
Underwritten on	Doc tier + property cash flow	Property's leases only
Documentation	Tax Return, Lite Doc, or No Doc	Standard DSCR documentation (leases)
Minimum DSCR	1.10 (income-producing deals)	0.75, best pricing at 1.20–1.25
Minimum credit score	650	680
Occupancy requirement	Min. 75% occupied at closing	Not required — market rent used for vacant units
Max LTV	Up to 80%	75% purchase / 70% cash-out
Owner-occupied eligible	Yes	No — investment property only
Property/vacancy management, reserves	Often required	Not required
Typical timeline	21–30 days	As little as 14 days

How to Get a 5–10 Unit DSCR Loan

Send us the property details Address, unit mix, and current leases if you have them — purchase or refinance, either works.

We run the DSCR We calculate the property's debt service coverage off actual or market rents and give you real numbers.

Submit leases We order the appraisal and collect the documentation needed to finalize underwriting.

Close in your entity We fund in as little as 14 days once the file is complete — closing in your LLC or business entity.

5–10 Unit DSCR Loans — Common Questions

Does a 5-10 unit property qualify for a DSCR loan?

Yes. Our DSCR program covers 1-10 units, including 5-10 unit small balance multifamily. You still qualify on the property's rental income instead of personal income or tax returns.

What documentation is needed for a 5-10 unit property?

The same as any DSCR loan — no rent roll, no income & expense statement, no tax returns. We qualify off the property's leases.

Do I need to close in an LLC for a 5-10 unit DSCR loan?

Yes — like all of our loans, 5-10 unit DSCR loans close in an LLC or business entity rather than as an individual. We can walk you through entity setup if you don't already have one.

What LTV can I get on a 5-10 unit DSCR loan?

Up to 75% LTV on a purchase and up to 70% LTV on a cash-out refinance.

How fast can a 5-10 unit DSCR loan close?

Many 5-10 unit deals still close in as little as 14 days from a complete file.

Is a 5-10 unit DSCR loan the same as a commercial loan?

No. We underwrite it under our DSCR program using the property's rental income — a simpler, faster path than a full commercial loan file. If your deal doesn't fit DSCR, our commercial loan program is also available.