5–8 Unit DSCR Loans
Small multifamily lives between residential and commercial lending — this program plants it firmly in DSCR territory. Qualify 5 to 8 units on rental income alone.
A 5–8 unit DSCR loan finances small multifamily properties on the property's rental income, not your personal income. Properties in this size range sit between residential and commercial lending, and this program plants them firmly in DSCR territory: gross rents are divided by the mortgage payment to produce the coverage ratio, with no tax returns, W-2s, or DTI calculation required.
Key Takeaways
- Built for 5–8 unit small multifamily properties.
- Qualifies on rental income alone — no personal income documentation.
- Sits between residential and commercial lending, in DSCR territory.
- A fit for portfolio landlords adding small multifamily.
“Five to eight units is the sweet spot where residential lenders wave you off and commercial lenders overcomplicate it. This program is built exactly for that gap.”
— Vision One Mortgage, Inc. · NMLS #7861
Have a live deal? Get a scenario solution fast.
Send us the numbers — price, rent, credit — and a NonQM Rates specialist will structure it, typically same business day.
Submit Your Deal Scenario5–8 unit DSCR at a glance
| Guideline | Sample Investor Guidelines |
|---|---|
| Loan Amount | $350K minimum — $3M maximum |
| Minimum Credit Score | 680 FICO |
| Minimum DSCR | ≥1.00 |
| Terms | 15-yr fixed · 30-yr fixed · 30-yr fixed interest-only |
| Example Tier (at $1.5M / 720 FICO) | 75% purchase · 75% rate/term · 65% cash-out |
| Short-Term Rental Income | Not permitted |
| Vacancy | Maximum 2 vacancies |
| Experience | At least one borrower must meet the experienced-investor definition |
Sample investor guidelines. investor matrices effective 08/05/2026. Subject to change — verified against current investor guidelines. Not an endorsement of any lender.
Reviewed by Vision One Mortgage, Inc. · NMLS #7861 · Last reviewed: October 2026
Small multifamily operators
- Investors buying or refinancing 5–8 unit residential buildings
- Landlords graduating from 1–4 units into small multifamily
- Experienced operators adding doors without personal-income docs
- Buyers who want interest-only cash flow on multifamily
How 5–8 unit DSCR works
- Rent qualifies the deal — DSCR of 1.00 or better, no personal income docs
- $350K to $3M — sized for the small multifamily market
- IO available — 30-year fixed interest-only for maximum cash flow
- Long-term rentals — short-term rental income isn’t permitted; stable tenancy is the model
Leverage tiers, vacancy rules, and experience definitions are scenario-specific — including the 2-vacancy maximum. Check your eligibility or call 949-241-9489 for current details. NMLS #7861.
5–8 unit DSCR vs. 1–4 unit DSCR
| 5–8 Unit DSCR | 1–4 Unit DSCR | |
|---|---|---|
| Property size | 5 to 8 units — small multifamily | 1 to 4 units |
| Investor experience | At least one borrower must meet the experienced-investor definition | More accessible for newer investors |
| Short-term rental income | Not permitted | Permitted on eligible scenarios — see our 1–4 unit DSCR options |
| Scale | Sized for operators adding doors | Sized for single rentals and small portfolios |
Sample comparison for illustration; guidelines vary by investor and are subject to change.
An illustrative 6-unit scenario
An experienced landlord in Florida buys a 6-unit building for $1,200,000. The building generates steady long-term rental income, and the appraiser’s market rents show the property’s net operating income comfortably covers the mortgage payment — a DSCR above 1.00. He qualifies on the building’s income alone, with no personal-income documentation, and chooses a 30-year fixed term. Illustrative example — not a quote or commitment to lend. Test your own deal on the DSCR ratio calculator →
Who this is not for
- Investors focused on short-term or vacation-rental income — not permitted on this program
- Borrowers without qualifying investor experience on any party to the loan
- Single-unit landlords not yet ready for multifamily operations and management
- Buyers needing loan amounts outside the small-multifamily range
5–8 unit DSCR FAQ
What counts as an experienced investor?
The definition is investor-specific — typically a history of owning or managing rental property. At least one borrower on the loan must meet it; we’ll confirm your situation qualifies.
Why isn’t short-term rental income allowed?
This program underwrites stable, long-term tenancy — STR income is considered too variable for the 5–8 unit model. STR investors should look at our 1–4 unit DSCR options.
How is this different from 1–4 unit DSCR?
Higher minimums ($350K, 680 FICO, DSCR ≥1.00), multifamily-specific terms, and the experience requirement — it’s built for operators, not first-time landlords.
Can I get interest-only?
Yes — 30-year fixed interest-only is available for maximum monthly cash flow.
Can I close in an LLC?
Many 5–8 unit investors do close in an entity. Entity structures are common on DSCR programs — we’ll confirm the requirements for your scenario before you commit.
Whose rents count — mine or the appraiser’s?
For purchases, the appraiser’s market-rent opinion typically drives the DSCR; for refinances, current in-place rents matter. We’ll use the right figure for your deal type.
Keep reading
More on DSCR: What is a DSCR loan? · DSCR ratio requirements · DSCR loans in an LLC · What credit score for a DSCR loan?
5–8 unit DSCR is available for properties in Texas, Florida, California, Arizona, and Georgia. Try the DSCR ratio calculator →
Your path from scenario to funded
No black box. Here is exactly how a deal moves with us — and what happens after you close.
Submit your scenario
Price, rent, credit, timeline. Get a straight answer on program fit — typically same business day.
Know your numbers
This page is step two. By the time you apply, you already understand the structure — no surprises.
Apply with a short checklist
A focused application built around the document checklist on this page. Nothing extra, nothing missing.
Close — then what’s next
Milestone updates through closing. After you fund, we watch for refinance windows and your next acquisition.
Plan your exit before you enter
Every investor loan needs an exit strategy. Here are the paths investors typically take from here — we help you pick the right one before you commit.
- Hold for long-term cash flow
- Portfolio refinance as the portfolio grows
- Sell individual buildings or the portfolio
Ready to run your numbers?
Every deal is different — submit your scenario and get a straight answer on program fit and structure, typically same business day.
Submit Your Deal ScenarioSee if your multifamily deal qualifies
60 seconds. No obligation. NMLS #7861.
