Once a property crosses 4 units, most lenders push you into commercial financing. We underwrite 5–10 unit properties on rental income under the same DSCR program — no tax returns, no personal income.
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 rent roll, not your personal tax returns or a global cash flow analysis across every entity you own.
Learn how DSCR loans work before diving into multifamily-specific requirements.
A few additional documents beyond a standard 1-4 unit DSCR file — but still no personal income verification.
Same program, same rental-income qualification — a few extra documents once you cross into small balance multifamily.
| Requirement | 1–4 Unit DSCR | 5–10 Unit DSCR |
|---|---|---|
| Income verification | Market rent or lease | Rent roll + income & expense statement |
| Vesting | Individual or LLC | LLC or business entity required |
| Minimum DSCR | 0.75, best pricing at 1.20–1.25 | 1.0, best pricing at 1.20–1.25 |
| Max LTV | 85% purchase / 80% cash-out | 75% purchase / 65% cash-out |
| Typical timeline | As little as 14 days | As little as 14 days |
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 rent roll 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, though at more conservative leverage than a 1–4 unit DSCR deal.
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 rent roll only |
| Documentation | Tax Return, Lite Doc, or No Doc | Rent roll + income & expense statement |
| Minimum DSCR | 1.10 (income-producing deals) | 1.0, best pricing at 1.20–1.25 |
| Minimum credit score | 650 | 700 |
| Occupancy requirement | Min. 75% occupied at closing | Max 2 units vacant |
| Max LTV | Up to 80% | 75% purchase / 65% 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 |
More on DSCR investing — markets, deal math, and what the numbers actually say.
Get a rate today. Qualify on the property's rental income, close in as little as 14 days, no tax returns required.