Investor financing
5-10 unit DSCR loans
For investors financing small multifamily properties that still qualify on a DSCR program rather than a large commercial loan.
Some wholesale lenders offer DSCR programs for 5-10 unit residential properties. Eligibility, documentation, and leverage vary by program.
Outside Virginia, Rockhouse Mortgage arranges business-purpose loans on non-owner-occupied investment property only.
How it works
On a 5-10 unit DSCR loan, lenders still generally compare qualifying rental income with the proposed payment. Unit mix, in-place rents, and operating expenses can matter more than they do on a single-family rental.
These programs sit between 1-4 unit residential DSCR and true commercial multifamily financing. The right path depends on unit count, occupancy, and how the property is operated.
Rockhouse Mortgage compares 5-10 unit DSCR options across wholesale lenders when the property fits that range.
DSCR = qualifying monthly rental income ÷ proposed monthly PITIA
For illustration only: if a lender uses $3,000 in qualifying monthly rental income and the proposed monthly PITIA is $2,500, DSCR would be 1.20. That figure is a calculation example, not a minimum. Lenders set their own DSCR thresholds, and some programs may consider lower or higher ratios depending on the rest of the file.
What lenders look at
- Credit profile and overall file strength
- Reserves and liquidity available after closing
- Property type, location, and condition
- Rental income method and occupancy
- Borrower or entity experience with similar properties
- Unit mix, occupancy, and in-place rent roll
- Whether the property is operated as residential rather than commercial lodging
Eligible properties
- 5-10 unit residential investment properties where a DSCR program is available
- Properties with a clear rent roll and supportable occupancy
Want help comparing programs?
Rockhouse Mortgage compares wholesale lender programs for the scenario in front of us. Start with a call or an online application.
Frequently asked questions
Does DSCR use my personal tax returns?
DSCR programs generally start with the property’s rental income versus the proposed housing payment. Some programs may still request personal documents. DSCR is not a guaranteed no-documentation product.
Can the loan close in an LLC?
LLC vesting is available on eligible programs, subject to entity documents and lender overlays. It is not guaranteed on every DSCR loan.
Are interest-only payments available?
Interest-only options are available on some DSCR programs. Availability depends on the lender, the property, and the rest of the file.
Why isn’t this just a commercial loan?
Some 5-10 unit properties can still be financed on a residential-style DSCR program. Others fit commercial multifamily guidelines better. We compare those paths against the same property rather than forcing one box.
Can I use this for a mixed-use building?
Mixed-use eligibility depends on the program. Residential unit count, commercial square footage, and occupancy rules vary. Ask us about the specific property.
Discuss a 5-10 unit DSCR scenario
Send the unit mix, rent roll, and how the property is held. We can tell you whether a DSCR program is even in play.
703-999-0903Loan programs, rates, fees, terms, and eligibility requirements are subject to change without notice. All loans are subject to credit, income, asset, property, and underwriting approval. This information is for educational purposes only and is not a commitment to lend.
Rockhouse Mortgage, LLC · NMLS #2469785 · Harry Hager, NMLS #647108 · Licensed by the Virginia Bureau of Financial Institutions · Outside Virginia, business-purpose investment property loans only · Equal Housing Opportunity