5+ Unit Multifamily Financing

Multifamily DSCR Loans: 5+ Unit Apartment Financing

How DSCR underwriting works for apartment buildings and larger multifamily properties — NOI-based DSCR calculation, loan size ranges, agency vs. private-label programs, and what lenders review for 5+ unit investments.

Multifamily DSCR: How It's Different From 1-4 Unit

When you cross the 5-unit threshold, DSCR financing shifts from residential to commercial underwriting. The core concept is the same — does the property's income cover the debt? — but how lenders calculate and apply DSCR changes significantly.

DSCR Formula: NOI ÷ Total Debt Service (not gross rent ÷ PITIA)
NOI: Gross income minus vacancy, expenses, management, reserves
Loan Sizes: $100K-$3M (small-balance), $3M-$7.5M (mid-size), $7.5M+ (large)
DSCR Minimum: Typically 1.20x-1.25x for agency, 1.15x-1.25x for private
Agency Programs: Fannie Mae/Freddie Mac — competitive rates, $1M+ minimum
Terms: 5, 7, 10, 30-year fixed; some with interest-only periods

Multifamily lenders look at the full operating picture — not just rent vs. PITIA. They analyze rent rolls, operating statements, trailing financials, and market comparables. A property with strong NOI but a borderline gross-rent DSCR may still qualify well under commercial multifamily underwriting because expenses are properly accounted for.

Financing a 5+ Unit Multifamily Property?

Submit your multifamily scenario — rent roll, operating statements, and property details. I'll match you with the right program.

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Matt Dean · NMLS #227603Reviewed: July 11, 2026