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Start with the property’s actual use
A building with five or more residential units is not simply a larger version of a one- to four-unit mortgage. A building with storefront or office space also needs a mixed-use review, even when most of its income comes from apartments.
Provide the unit mix, square footage, rent roll and current occupancy. The residential options shown here exclude commercial space. A building with a store or office needs a separate financing review.
Coverage is calculated for the selected program
Property income, operating information and the qualifying debt payment need to meet the program’s coverage test. Accepted rent, vacancies and expense treatment can differ from a residential DSCR calculation.
The property’s current operation matters. An ineligible vacancy, weak commercial tenant or unsupported rent projection can change the result. Bring leases and actual operating information rather than relying only on the seller’s projected figures.
Loan size and experience change the limits
A program can offer a broad loan range while requiring lower leverage at larger amounts or lower credit scores. The table identifies specific combinations rather than one aggregate maximum.
Investor experience may include prior multi-unit ownership or a defined period managing investment property. First-time-investor eligibility should be checked rather than assumed from a separate one- to four-unit DSCR option.
Review the building and the full repayment structure
Property condition, appraisals, acreage, location, insurance and required reserves affect eligibility. Mixed-use programs can restrict the kind, share and occupancy of commercial space. Short-term rentals may be excluded.
Compare amortization, interest-only periods, early-payoff provisions and future refinancing needs. A long amortization schedule and the legal maturity are not necessarily the same thing. Confirm the actual structure in the final terms.
Bring a complete property summary
I can help identify which option deserves review once the property facts and ownership plan are clear. Start with the address, unit count, current income, requested amount and your investment history.
Use legal and tax professionals for ownership, lease and tax decisions. Financing eligibility is one part of acquiring and operating the property, and a lender’s approval is not a guarantee of investment performance.
Options and eligibility to compare
Compare the option that fits your credit, loan amount, property and documentation. Each has its own requirements, and the full application must qualify.
Five- to ten-unit residential purchase
Credit and underwriting: 700–719; DSCR at least 1.10.
Financing and amount: Up to 75% financing through $1 million; minimum loan $400,000.
Income and property: Five to ten residential units; prior ownership of a property with at least two units. No mixed-use, rural or short-term-rental property. Eligible citizenship/entity conditions.
Benefits and conditions: Six months of reserves at this amount. Larger loans require different leverage and can require more reserves; appraisal, acreage and condition limits apply.
Larger five- to ten-unit residential purchase
Credit and underwriting: 740 or higher; DSCR at least 1.10.
Financing and amount: Up to 70% financing through $3 million.
Income and property: Eligible five- to ten-unit residential property and experienced borrower; same use restrictions as the residential program.
Benefits and conditions: Twelve months of reserves above $1.5 million; two appraisals above $2 million. Interest-only selection can add limits.
Compare the alternatives
One- to four-unit rentals generally belong in the residential DSCR review.
A property that needs temporary financing may require a separate bridge review.
What to gather for a useful conversation
Rent roll, leases and operating records
Residential and commercial unit/area breakdown
Property condition and insurance details
Ownership and investment experience
Requested amount, exit plans and reserve funds
Frequently asked questions
Does a DSCR loan automatically cover five or more units?
No. Small multifamily financing has its own unit-count, income, property and borrower rules.
Can a building with a store and apartments qualify?
The five- to ten-unit residential options shown here exclude mixed-use buildings. Tell me about any commercial space early so we can discuss whether a separate financing review is appropriate.
Are short-term rentals allowed?
Not in every program. The all-residential five- to ten-unit example here excludes short-term rentals.
Related mortgage learning
Short-Term Rental Income: What Needs to Be Reviewed
Second home or investment property? Start with how you will use it
Authoritative resources
IRS overview of rental income and expenses
CFPB explanation of prepayment penalties
Talk through your Ohio mortgage options
Call or text Gordon Hinchen at (440) 975-6216. Start with your plans and general questions. Use our secure application process for financial documents.
Educational information only. Not a commitment to lend or a guarantee of approval. Eligibility, availability and terms depend on the complete application, property and underwriting review. DRG Mortgage, LLC | NMLS #2657603 | Gordon Hinchen | NMLS #2751302 | Ohio residential mortgage brokerage services only | Equal Housing Opportunity.