5-Unit Multifamily Loans
A 5-unit property is classified as commercial real estate — it doesn't qualify for residential DSCR loans. Our small-balance commercial desk underwrites 5-unit deals from $300K to $1.2M where most lenders won't go.
Loan Parameters
- 5-unit apartment buildings and mixed-use properties
- Loan amounts: $300,000 – $1,200,000
- Up to 75% LTV on purchase
- Minimum DSCR: 1.15x on combined rental income
- Credit score 680+ preferred
- Commercial appraisal required
- Close in 30–45 days
- Business-purpose only
Why 5-Unit Properties Are Hard to Finance
Any property with 5 or more units is classified as commercial real estate, requiring commercial-style underwriting. Most commercial lenders skip deals under $1M because the fixed underwriting costs make small loans unprofitable for them. Our small-balance commercial program was built precisely for this gap.