By Mike Basti, President and Mortgage Broker · Individual NMLS #322904 · Updated Property: 5–10 unit residential rental building. Loan size: $250,000 to $3,000,000. Max LTV: 75% purchase, 70% rate-and-term, 65% cash-out. DSCR: 1.10 minimum. Credit: 680. Reserves: 6 months (12 months over $1.5M). Experience: you must already own a 2+ unit property. U.S. citizens only.
On this page
Program terms
| Item | 5–10 unit multifamily DSCR |
|---|---|
| Loan amount | $250,000 minimum, up to $3,000,000 |
| Purchase | Up to 75% LTV |
| Rate-and-term refinance | Up to 70% LTV |
| Cash-out refinance | Up to 65% LTV |
| Minimum DSCR | 1.10 |
| Minimum credit score | 680 |
| Reserves | 6 months standard; 12 months on loans over $1.5M |
| Income documents | None: qualifies on the building's rent |
Pricing changes daily and depends on the DSCR, credit, LTV and loan size. Call 949-379-5320 (Newport Beach) or 310-759-4757 (Marina del Rey) for today's quote on your building.
Who qualifies
- Experienced investors: you must already own a 2-unit or larger property.
- U.S. citizens only. Permanent residents and foreign nationals should ask about our other DSCR programs or commercial options.
- Long-term rentals only: no short-term rentals (Airbnb/VRBO).
- Residential units only: no mixed-use buildings with retail or office space.
- Unit size: every unit must be at least 500 square feet.
Vacant units & financed fees
Purchase: every unit can be vacant at closing. That helps when you're buying a building to renovate, re-tenant or reposition. Rate-and-term or cash-out refinance: no more than one unit can be vacant.
Broker and real estate agent fees may be financed into the loan instead of paid in cash, within the LTV limits above. That keeps more of your cash for reserves and improvements.
How a 5–10 unit DSCR loan is sized
On a multifamily building, add up the rent on every unit and divide by the full monthly payment (principal, interest, taxes and insurance).
Example: an 8-unit building renting for $2,000 per unit brings in $16,000 a month. If PITIA is $14,000, the DSCR is $16,000 ÷ $14,000 = 1.14, which clears the 1.10 minimum.
If the ratio comes in under 1.10, a larger down payment lowers the payment and lifts the DSCR. Run your own numbers in the DSCR calculator, or see how net operating income works on income property.
5–10 units vs 1–4 units vs commercial
| 1–4 unit DSCR | 5–10 unit DSCR | Commercial / agency | |
|---|---|---|---|
| Property | Single-family, 2–4 units, condos, short-term rentals | 5–10 residential units, long-term rentals | 5+ unit multifamily, mixed-use, office, retail |
| Qualifies on | Rent ÷ payment | Rent ÷ payment (1.10 min) | Net operating income and DSCR |
| Credit | 660+ at most lenders | 680+ | Varies by program |
| Max purchase LTV | Up to 85% with 720+ credit | 75% | Often 65–75% |
| Loan size | Up to $3,500,000 | $250,000 to $3,000,000 | Often $500,000 and up |
Compare with the standard 1–4 unit DSCR requirements or the full commercial loan page.
5–10 unit DSCR loan FAQs
Can I get a DSCR loan on a 5 to 10 unit apartment building?
Yes. Save Financial arranges a multifamily DSCR program for 5 to 10 unit residential rental buildings. It qualifies on the building's rent compared with its payment, not on your personal income, with loan amounts from $250,000 up to $3 million.
What is the minimum DSCR and credit score for a 5 to 10 unit DSCR loan?
This program needs a DSCR of at least 1.10, meaning the rent covers the full payment with 10% to spare, and a minimum 680 credit score.
How much down payment do I need for a 5 to 10 unit building?
On a purchase the program goes up to 75% loan-to-value, so plan on at least 25% down. A rate-and-term refinance goes up to 70% LTV and a cash-out refinance up to 65% LTV.
Can the building be vacant?
On a purchase, all units can be vacant. On a rate-and-term or cash-out refinance, no more than one unit can be vacant.
Do I need landlord experience?
Yes. You must already own a 2-unit or larger property. This program is built for experienced investors moving up from smaller rentals.
Who is not eligible for this program?
The program is for U.S. citizens only. Mixed-use buildings and short-term rentals are not eligible, and every unit must be at least 500 square feet.
How many months of reserves do I need?
Six months of reserves is standard. Loans over $1.5 million need 12 months.
Can broker and real estate agent fees be financed?
Yes. Broker and realtor fees may be financed into the loan instead of paid in cash at closing, within the program's LTV limits.
Is a 5 to 10 unit building a residential or commercial loan?
Buildings with 5 or more units are treated as commercial property, so standard 1 to 4 unit residential loans do not apply. A multifamily DSCR loan sizes the deal on rent, like a residential DSCR loan, without the longer process of agency or bank commercial financing.
Program terms as of November 2026 and subject to change. All loans subject to credit approval and lender guidelines. Save Financial, Inc. is an independent California mortgage broker (company NMLS #377740, DRE #01875766) that arranges loans through wholesale lenders.