DSCR / Multifamily
Multifamily DSCR Loans
Qualify a 2–4 unit or 5+ unit rental property on its rent roll — not your tax returns, W-2s, or personal debt-to-income.
What Is a Multifamily DSCR Loan?
A multifamily DSCR loan is a Debt Service Coverage Ratio loan sized against a multi-unit property's rental income instead of the borrower's personal income. If the building's rent covers its own mortgage payment — principal, interest, taxes, and insurance — it qualifies, regardless of what shows up on a tax return. That makes DSCR the standard financing tool for investors who own property through an LLC, self-employed sponsors whose tax returns understate cash flow, and anyone scaling past the number of conventional loans a personal DTI can support.
“Multifamily DSCR” covers two distinct property types with different underwriting mechanics. 2–4 unit residential properties (duplexes, triplexes, quads) qualify almost identically to a single-family DSCR rental — same appraisal process, same lender panel, same 30-year fixed programs. 5+ unit multifamily is treated as small commercial: a commercial income-approach appraisal, underwriting against the property's net operating income rather than a single-family rent comp, and a narrower band of lenders who write DSCR paper at that size. 818 originates both.
How Multifamily DSCR Qualification Works
DSCR = Gross Rental Income ÷ Monthly PITI. On a 2–4 unit property, we total the actual or market rent across every unit. On a 5+ unit building, we underwrite against net operating income — gross rent less a vacancy factor and operating expenses — because that's how a commercial appraiser will size the property's value.
Example: 8-Unit Building
This deal works. Green light.
Rate & Term Ranges
General guardrails, not a quote — your exact rate depends on credit, DSCR, LTV, and unit count.
2–4 Unit Residential
Term: 30-year fixed, IO options
Max LTV: Up to 80% LTV
Priced close to a 1-unit DSCR loan; broadest lender panel.
5–20 Unit Multifamily
Term: 30-year fixed or 5–10yr fixed with balloon
Max LTV: Up to 75% LTV
Priced with a modest premium over 2–4 unit; fewer lenders write this DSCR band.
5+ Unit Commercial vs. 2–4 Unit Residential
Same DSCR concept, different underwriting file.
2–4 Unit Properties
- Residential-style appraisal with comparable rent survey
- Qualifies on gross unit rent, actual or market
- Widest lender selection, fastest close (14–21 days)
- Treated the same as a 1-unit DSCR file operationally
5+ Unit Multifamily
- Commercial income-approach appraisal (longer turn time)
- Qualifies on net operating income, not gross rent
- Narrower lender panel; entity and reserve requirements are stricter
- Above ~20 units, most deals route to agency or bridge instead of DSCR — see our full multifamily financing page for those programs.
The numbers behind the relationship.
Trailing 12 months · drawn from cleared funded deals
- DSCR25%
- Fix & Flip17%
- Multifamily17%
- STR8%
- Bridge17%
- Construction8%
- Structured8%
Instant Property Valuation Pre-Check
When you submit a deal, our AI appraisal engine automatically runs a conservative, lender-grade valuation analysis. You get a value range, confidence score, and risk flags — before you even talk to a lender.
As-Is & Stabilized Value Ranges
Low / mid / high estimates using income, sales comparison, and cost approaches.
Confidence Score & Risk Flags
Know where your deal stands before submission. Conservative, lender-first output.
Credit Committee Notes
Internal-grade analysis notes you can use when packaging the deal for lenders.
As-Is Value Range
Key Metrics
NOI Annual
$38,400
Implied Cap Rate
8.4%
Price / SqFt
$212
Methods Used
Income + Comps
Risk Flags (2)
Limited recent comps within 0.5 mi • Vacancy data from 2024 Q3
Common questions.
Can I get a DSCR loan on a multifamily property?
Yes. 818 underwrites DSCR loans on 2–4 unit residential properties and 5–20 unit multifamily assets using the same core mechanic: the property’s rent has to cover the mortgage payment. Above roughly 20 units, most deals shift to agency, bridge, or CMBS execution instead of DSCR.
Is a multifamily DSCR loan the same as a DSCR loan on a single-family rental?
The math is identical — DSCR = gross rental income ÷ PITI — but multifamily underwriting leans harder on the rent roll and, on 5+ unit deals, on net operating income rather than a single lease. Reserve requirements and appraisal methodology (income approach) also differ from a 1-unit file.
What DSCR do I need on a multifamily property?
1.20× or higher gets the best pricing across our lender panel. 1.00–1.19× still qualifies at most lenders with a modest rate adjustment. Below 1.00×, expect a lower max LTV, stronger credit, and more reserves — some lenders won’t go there at all on 5+ unit deals.
Do 5+ unit multifamily DSCR loans require a commercial appraisal?
Yes. 2–4 unit properties are typically appraised like residential investment property. 5+ unit buildings require an income-approach commercial appraisal, which takes longer and weighs the rent roll and expense ratio directly into the value opinion.
Have a Deal Right Now?
Submit your multifamily scenario. Our AI Scenario Desk reads the rent roll and gives you a real DSCR, LTV, and next-step read.
Prefer to read the full DSCR framework first? See the 2026 DSCR Investor Playbook →