I’m Michael DiVita — DRE #01372066 | NMLS #241655, DiVita Home Finance (DRE #01818285 | NMLS #323700), Tiburon, CA. I’ve been in California mortgage lending since 2000 and founded DiVita Home Finance in 2007. DSCR loans on 2–4 unit properties are among the strongest scenarios I see — combined rents frequently push the DSCR well above 1.0, making approval straightforward. Call (800) 239-1103.
A duplex, triplex, or fourplex gives you the best of both worlds as a California investor: rental income from multiple units, residential-style financing, and the DSCR loan’s no-income-verification advantage. Combined rents often push DSCR ratios well above 1.0 — making multifamily 2–4 units one of the easiest DSCR loan scenarios to qualify.
How DSCR Works on 2–4 Unit Properties
The appraiser provides market rent for each unit. All unit rents are added together as gross monthly income. That combined income is divided by total PITIA (principal, interest, taxes, insurance, association dues) to get the DSCR ratio.
Example — Triplex in Riverside: Three units at $1,600, $1,650, $1,700/mo = $4,950 combined. PITIA on a $650K purchase (25% down): $4,070/mo. DSCR = 4,950 ÷ 4,070 = 1.22 ✅
DSCR by Unit Count — California Examples
| Property | Market | Combined Rents | Est. PITIA | DSCR |
|---|---|---|---|---|
| Duplex (2 units) | Sacramento | $3,800/mo | $3,200/mo | 1.19 ✅ |
| Triplex (3 units) | Riverside | $4,950/mo | $4,070/mo | 1.22 ✅ |
| Fourplex (4 units) | Fresno | $5,600/mo | $4,100/mo | 1.37 ✅ |
| Duplex | East Bay | $5,400/mo | $6,200/mo | 0.87 ⚠️ sub-1.0 |
Duplex vs. Triplex vs. Fourplex — What to Know
| Property Type | Financing Type | Min Down (DSCR) | DSCR Calculation |
|---|---|---|---|
| Duplex (2 units) | Residential DSCR | 20–25% | Both units combined |
| Triplex (3 units) | Residential DSCR | 20–25% | All 3 units combined |
| Fourplex (4 units) | Residential DSCR | 20–25% | All 4 units combined |
| 5+ units | Commercial DSCR | 25–30% | NOI-based calculation |
2–4 units are classified as residential for DSCR loan purposes. This means easier qualification, lower down payment requirements, and more lenders available vs. commercial 5+ unit programs. The fourplex is the maximum unit count for residential DSCR treatment — a 5-unit and above is treated differently.
Owner-Occupied vs. Non-Owner Occupied
DSCR loans are investment property only — you cannot live in one of the units on a DSCR loan. If you want to house-hack (live in one unit, rent others), you would need a conventional or FHA loan. But if you are buying purely as an investor, DSCR is the cleanest path: no income verification, no employment check, and you can vest in an LLC.
See the full guide on DSCR loans for multifamily properties in California for more detail.
Frequently Asked Questions — DSCR Loan for Duplex, Triplex, Fourplex California
Can I use a DSCR loan to buy a duplex or triplex in California?
Yes. DSCR loans work well for 2–4 unit residential properties in California. The lender calculates the DSCR using the combined market rents from all units divided by the total PITIA payment. Because multiple units generate more rental income than a single-family property, duplexes, triplexes, and fourplexes frequently achieve DSCR ratios above 1.0 even in California’s higher-priced markets. You do not need to show personal income, W-2s, or tax returns — qualification is based on the property’s cash flow, not yours.
What is the minimum down payment for a DSCR loan on a California fourplex?
Most DSCR lenders require 20–25% down for 2–4 unit properties. The exact requirement varies by lender, DSCR ratio, and credit score. A stronger DSCR (1.25+) and higher credit score (720+) sometimes allows 20% down. A weaker DSCR (1.0–1.10) or lower credit score typically pushes the requirement toward 25%. California’s high property values mean you will often need to bring a substantial down payment regardless — planning on 25% is a safe baseline for budgeting purposes.
Can I live in one unit and rent the others on a DSCR loan?
No. DSCR loans are strictly for investment (non-owner-occupied) properties. If you plan to live in one unit while renting the others — a strategy called house hacking — you need a different loan program. FHA loans allow you to purchase a 2–4 unit property with 3.5% down and live in one unit as your primary residence. Conventional loans also allow this with a slightly higher down payment. DSCR is only for properties where you will not be occupying any unit.
Talk to Michael Directly
DiVita Home Finance | Tiburon, CA | In lending since 2000, founded DiVita Home Finance in 2007. Michael DiVita DRE #01372066 | NMLS #241655. Company DRE #01818285 | NMLS #323700.
💬 Text: (310) 849-9124
