Most DSCR lenders cap at 4 units. DiVita Home Finance goes further — we offer DSCR loans for multifamily properties up to 8 units, and through one specialized investor, up to 10 units. That’s a meaningful edge for California investors targeting small apartment buildings, 5-plexes, and mid-size multifamily that most non-QM lenders won’t touch.
📞 Call (800) 239-1103 for same-day multifamily DSCR pricing. NMLS #323700 | Michael DiVita NMLS #241655.
DSCR Multifamily: The Unit-Count Breakdown
| Units | Classification | DSCR Available? | Notes |
|---|---|---|---|
| 1–4 units | Residential | ✅ Yes — standard | Fannie/Freddie eligible or non-QM; most lenders offer this |
| 2–4 units | Residential multifamily | ✅ Yes — standard | DSCR based on total gross rents; strong product availability |
| 5–8 units | Small commercial multifamily | ✅ Yes — DiVita specialty | Non-QM only; underwriting shifts to NOI/occupancy analysis |
| 9–10 units | Small commercial multifamily | ✅ Yes — specialty investor | Available through one select investor; strong file required |
| 11+ units | Commercial multifamily | Commercial loan required | See our commercial real estate loans |
How DSCR Is Calculated for Multifamily Properties
For 1–4 unit properties, DSCR = Gross Monthly Rent ÷ Monthly PITIA. Simple.
For 5–10 unit properties, underwriting shifts to a more commercial approach:
DSCR = Net Operating Income (NOI) ÷ Annual Debt Service
NOI = Gross Rents × (1 – Vacancy Rate) – Operating Expenses (taxes, insurance, maintenance, management, utilities)
| Item | Example: 6-Unit Oakland Building |
|---|---|
| Gross annual rents (6 × $2,200/mo) | $158,400 |
| Less 5% vacancy | –$7,920 |
| Less operating expenses (~35%) | –$52,668 |
| Net Operating Income (NOI) | $97,812 |
| Annual debt service (7.75%, 30yr, $900K loan) | $77,220 |
| DSCR | 1.27 ✅ |
DSCR Loan Requirements: 2–4 Units vs. 5–10 Units
| Requirement | 2–4 Units | 5–10 Units |
|---|---|---|
| Minimum DSCR | 0.75–1.0 | 1.0–1.25 (stronger file needed) |
| Minimum Credit Score | 620–660 | 660–700 |
| Down Payment | 20–25% | 25–30% |
| Max LTV | 75–80% | 70–75% |
| Loan Amount | Up to $3M+ | Up to $5M (case by case) |
| Income Docs | None (property income only) | None (NOI analysis only) |
| Reserves | 6 months PITIA | 9–12 months NOI |
| Appraisal | Standard + rent schedule | Full income approach appraisal |
Why 5–10 Unit DSCR Is Harder to Find
When a property crosses 5 units, it’s no longer classified as residential real estate under federal guidelines. This means:
- Fannie Mae and Freddie Mac do not offer financing (residential conforming loan limit doesn’t apply)
- FHA multifamily programs are for 5+ but require affordable housing or specific use cases
- Most non-QM DSCR lenders cap at 4 units because they securitize into residential RMBS pools
- Commercial banks and small portfolio lenders handle 5+ units but require full income documentation
DiVita Home Finance bridges this gap — we work with non-QM investors who underwrite 5–10 unit properties on a debt-service basis without requiring personal income documentation, tax returns, or W-2s. The property qualifies on its own cash flow.
Best California Markets for Multifamily DSCR
- Oakland / East Bay — strong renter demand, rent control awareness required, solid NOI on 5–8 unit buildings
- Sacramento — best cap rates in Northern California; 6-10 unit buildings produce strong DSCR
- Fresno / Bakersfield / Stockton — Central Valley cash flow markets with affordable acquisition prices
- Long Beach / Compton / Inglewood — SoCal workforce housing with solid rent-to-price ratios
- Riverside / San Bernardino — Inland Empire multifamily, lower prices + solid rents = strong DSCR
- Chico / Redding / Eureka — Northern CA secondary markets; student housing near CSU Chico
DSCR Multifamily Rates 2026
Rates for multifamily DSCR loans are unit-count dependent:
- 2–4 units, strong file: 7.00–7.75%
- 5–8 units, strong file: 7.75–8.50%
- 9–10 units, specialty investor: 8.25–9.25% (case by case)
Interest-only options are available on select multifamily DSCR programs, which significantly improves cash flow during the hold period. A 40-year IO structure is particularly effective for 5–8 unit buildings.
Frequently Asked Questions — Multifamily DSCR California
Can I get a DSCR loan on a 5-unit property in California?
Yes. DiVita Home Finance offers DSCR loans on 5–8 unit properties through specialized non-QM investors. Most lenders cap at 4 units — we don’t. Call (800) 239-1103 to discuss your specific building.
Is there a DSCR loan for a 10-unit building?
Yes — through one specialty investor we work with, 10-unit properties are eligible for DSCR financing. Requirements are tighter: 700+ credit score, 30% down, 1.20+ DSCR, and strong reserves. Call us to see if your property qualifies.
Do I need to show personal income for a multifamily DSCR loan?
No. DSCR loans — including multifamily — qualify on the property’s income alone. No tax returns, no W-2s, no personal DTI calculation.
What’s the minimum down payment for a 5-8 unit DSCR loan?
Typically 25–30% for 5–8 unit properties. Stronger credit scores (720+) and higher DSCR ratios (1.25+) may allow 25% down. Sub-1.0 DSCR properties require 30% or more.
📞 Financing a multifamily investment in California? Call (800) 239-1103. We offer DSCR loans from duplex to 10 units — no income docs required. NMLS #323700 | Michael DiVita NMLS #241655.
About DiVita Home Finance
DiVita Home Finance is a small, family-owned mortgage company based in Marin County, California. When you call, you speak directly with Michael DiVita — the owner — not a call center, not an out-of-state rep, not someone reading from a script. We’re here for a low-key, no-obligation conversation about your situation.
We take your privacy seriously. We will never sell your information to third-party lenders or lead generation companies — unlike many of the large mortgage platforms. Your inquiry stays with us, period.
📞 Call: (800) 239-1103 | 💬 Text Michael directly: (310) 849-9124
