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5 to 10 Unit Small Multifamily

5 to 10 Unit
DSCR Loans.

DSCR financing for stabilized 5 to 10 unit small multifamily. The sweet spot between residential DSCR and institutional multifamily.

Quote My DealFull Loan Matrix
Program Snapshot
$500K
Min loan
$5M
Max loan
75%
Max LTV
None
Min DSCR under $1M
0.9x
Min DSCR $1M+
5 to 10 unit garden style and small apartment buildings
As low as 1 day seasoning, no reserves seasoning on purchases
25 to 30 year options with interest only offered
Program Overview

The Sweet Spot Between SFR and Institutional

Worth Knowing
As Low as 1 Day Property Seasoning
On most cash out and rate-and-term refinances, we can close with as little as 1 day of property seasoning. Mention it when you reach out and we will confirm what applies to your deal.

5 to 10 unit small multifamily sits in a useful gap between single family DSCR and institutional agency loans. Too big for most 1 to 4 unit programs, often too small for Fannie or Freddie small balance to take seriously.

Our program treats these assets as portfolio scale DSCR loans. We underwrite the property's NOI and DSCR and structure long term debt without the diligence overhead of an agency loan.

Loan size runs $500K to $5M, with 25 to 30 year pricing being the most common request. Stabilized garden style and small apartment buildings are the core asset type. No experience requirement.

Worth Knowing
No Reserves Seasoning on Purchases
On purchases, reserve funds often do not need to be seasoned, which helps when capital was just moved between accounts before close.
Worth Knowing
No Minimum Occupancy if NOI Works
Unlike agency programs that force 85% physical occupancy minimums, we underwrite on what the property actually produces. If NOI supports the debt service at our DSCR threshold, occupancy at close is flexible.
Loan Matrix

Typical Program Terms

Program parameters for DSCR rental financing. Final pricing and structure determined by credit, property, and market underwriting.

Loan Amount
$500,000 to $50,000,000
Max LTV
75%Including cash out refinances
Min DSCR under $1M
None
Min DSCR $1M+
0.9x
Loan Term
25 to 30 year5, 7, 10 year hybrid options available
Amortization
30 year amortizing10 year interest only option available
Property Type
5 to 10 unitsGarden style and small apartment buildings
Minimum Occupancy
NoneUnderwritten on actual NOI, not occupancy snapshot
Sponsor Experience
None requiredFirst time small multifamily sponsors accepted
Recourse
Full recourse typicalLimited recourse available case by case
Prepay Structure
Step down5/4/3/2/1 standard structure
Note: Matrix represents typical program parameters. Actual terms vary by state, property type, occupancy, and credit profile. Cash out limits, seasoning requirements, and reserves vary by transaction.
Refinancing or buying 5 to 10 units?
Share the property details for DSCR pricing and leverage.
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Eligible Property

Multifamily That Fits

Garden Style 5 to 200 Units

Suburban garden apartments, the workhorse value add asset.

Mid Rise 50 to 200 Units

Urban mid rise apartment buildings with elevator and structured parking.

Scattered Site Portfolios

Geographically clustered small multifamily underwritten as a single pool.

Student Housing

Off campus purpose built student housing in core university markets.

Affordable Housing

LIHTC, Section 8, and naturally occurring affordable with relevant compliance.

Manufactured Housing Communities

MHC parks with pad rentals, structured as multifamily for permanent financing.

Not eligible: Commercial ground up construction (we do not offer multifamily new construction).
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Who Uses It

Built for Multifamily Sponsors

From your first 12 unit acquisition to a $40M garden style refinance, the program structures across the lifecycle.

1

Value add syndicators

Bridge to acquire and stabilize, then refinance into agency permanent. Both legs quoted together up front.

2

Stabilized operators

Long term hold financing with 5, 7, 10, or 25 to 30 year structures.

3

First time sponsors

Strong key principal with property management experience accepted with reduced leverage.

4

1031 buyers

Bridge financing to meet identification and close deadlines, then permanent at stabilization.

How It Closes

Typical Timeline: About 40 Days

01
Week 1

Quote and LOI

Submit T12, rent roll, and OM. Terms often in 48 hours, signed LOI in a week.

02
Week 2 to 3

Diligence

Property condition, environmental, appraisal, title, insurance, and seismic where applicable.

03
Week 3 to 5

Underwriting

Sponsor review, asset underwriting, market analysis, credit committee.

04
Week 5 to 7

Close + Fund

Loan documents negotiated and signed. Wire on close date.

Ready to move on a deal?
Request a quote and we will confirm pricing, leverage, and timeline.
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5 to 10 Unit DSCR Questions

Frequently Asked

What is the minimum unit count?+
5 units. Below that, the asset falls under our DSCR program (1 to 4 unit) which is materially faster and simpler.
Can I finance a value add deal that is currently under 80% occupied?+
Yes, through our bridge program. We underwrite the deal on the value add thesis: pro forma rents, capital plan, and stabilization timeline. Bridge holds you until physical and economic occupancy support permanent debt.
Do you require non recourse?+
Many deals are limited recourse (50%) or non recourse with bad boy carve outs. Smaller balance and higher leverage deals tend to be full recourse. Structure is negotiated per deal.
What about interest only periods?+
Common on bridge and agency loans. Stabilized agency offers up to 5 years of interest only on lower leverage deals. Bridge is interest only throughout the term.
How do you handle student housing or affordable housing?+
Both eligible. Student housing requires university proximity and pre lease velocity data. Affordable requires compliance documentation for LIHTC, HUD, or Section 8 components.
Can I close in a Delaware Statutory Trust?+
Yes, common on 1031 deals. DST structuring is supported on agency and portfolio loans.
Related Programs

Other Programs

View all programs
Speed

Bridge

Fast close transition capital

Commercial

Commercial

Mixed use, retail, office

Long Term

DSCR Rental

1 to 4 unit long term rental

Get Started

Have a 5 to 10 Unit Deal?
Let us Quote It.

Send the rent roll and T12. Terms often in 48 hours.