Multifamily DSCR loans fund 2-10 unit residential properties (duplex, triplex, fourplex, and small apartment buildings). 2-4 unit properties are treated as residential and price similarly to single-family DSCR; 5-10 unit properties cross into commercial DSCR with slightly wider spreads but stronger cash flow per dollar invested.
2-4 unit terms: up to 80% LTV purchase, 75% cash-out, 660+ FICO, 30-year fixed or ARM, LLC vesting. 5-10 unit terms: up to 75% LTV purchase, 70% cash-out, 680+ FICO, 5/7/10-year fixed with 30-year amortization, LLC or Series LLC vesting. Both use the property's DSCR (gross rents รท PITIA) to qualify.
Multifamily is the tightest yield-per-dollar in residential real estate. A well-bought 4-unit in a strong rental market frequently produces 40-60% more monthly cash flow than an equivalent single-family purchase at the same price point. Cost segregation studies also generate stronger first-year depreciation on multifamily than single-family. Get a multifamily rate quote.