Conventional mortgage guidelines generally stop at four-unit residential properties. We offer financing solutions for residential investment properties containing five to nine units, allowing qualified investors to continue growing their portfolios.
The Scenario
Oliver had already built a portfolio consisting of six rental properties when he found another promising opportunity: a six-unit residential building with strong rental income. He had several positive factors working in his favor.
- 30% available for the down payment
- 739 FICO score
- Strong rental income from the subject property
- Experience owning and managing investment properties
However, Oliver encountered two challenges. First, the net income reported on his tax returns created a debt-to-income ratio issue. Second, conventional residential financing is generally limited to properties containing no more than four units. Although the property’s cash flow supported the investment, Oliver could not qualify through traditional financing.
The Non-QM Solution
Our DSCR loan program for five- to nine-unit residential properties provided the solution Oliver needed. Instead of qualifying Oliver based on his personal income, employment or tax returns, the loan was evaluated primarily using the rental income and cash flow generated by the property. Because the property produced sufficient income to support its mortgage obligations, Oliver was able to move forward with the purchase.
DSCR Financing for Five- to Nine-Unit Properties
- Five- to nine-unit residential investment properties
- Minimum DSCR of 1.15
- Minimum 680 FICO score
- Financing available up to 75% LTV
- No personal income verification required
- No employment verification required
- Qualification based primarily on the property’s cash flow
We work with real estate investors who need practical financing options beyond conventional lending guidelines. If you are purchasing or refinancing a five- to nine-unit residential investment property, contact us to discuss the property and available loan programs.
