Multi-Unit DSCR
What is Multi-Unit DSCR?
A specialty DSCR program for 5–8 residential units or 2–8 mixed-use buildings — qualified on property cash flow, for experienced investors only.
Multi-Unit DSCR is a category of DSCR loan designed for residential rental properties that exceed the 4-unit threshold of standard DSCR programs. Once a building has 5 or more residential units — or includes commercial space along with residential units — conventional banks treat it as commercial real estate, with longer underwriting cycles, higher rates, and balloon payments.
A multi-unit DSCR loan keeps the underwriting investor-friendly: qualification is on the property’s rental cash flow (DSCR ≥ 1.00 required), not on borrower personal income. Loan terms are typically 30-year amortization, fixed or ARM. The underwriting still accounts for the larger property size with stricter reserves and tighter LTV caps than standard 1–4 unit DSCR.
These products fill a gap in the lending market: small apartment buildings and urban mixed-use too large for residential DSCR but too small (or too operationally simple) to justify commercial-bank treatment.
How Multi-Unit DSCR applies at Total Quality Lending
Total Quality Lending’s Multi-Unit DSCR program covers single investment properties with:
- 5–8 residential units, OR
- 2–8 mixed-use units, where commercial space is ≤ 49.99% of total building area
Program specs:
- Minimum FICO: 700 (720 in CT, FL, NJ)
- Loan amounts: $400,000 to $2,000,000
- Max LTV: 75% purchase / 70% rate-term / 65% cash-out at the $1.5M tier (70% / 65% / 65% on the $2M tier)
- DSCR ≥ 1.00 required — no sub-1.00 tier
- Experienced investors only — first-time investors not eligible
- Ineligible states: IL, NY
- Foreign Nationals not eligible under this product