DSCR Loans for 5-8 Unit Properties in Austin, TX

Small multifamily is a natural next step for many Central Texas investors, but five units is where a lot of financing changes. Many residential programs stop at four units, and commercial bank loans often bring heavier underwriting. A 5-8 unit DSCR program sits in between. It’s part of our non-QM loan options.

How it differs from 1-4 unit DSCR and commercial loans

• 1–4 unit DSCR loans are residential investor loans with common, widely offered guidelines. See our DSCR loans for 1–4 unit rentals.
• 5-8 unit DSCR loans are offered by fewer lenders. Many treat them as small-balance commercial, and they often review a rent roll and operating statement.
• Commercial bank loans often look closely at your personal finances and business history, and terms are set by the bank.

Down payment, loan size and terms vary by lender.

Purchase and cash-out uses

You can use a 5-8 unit DSCR loan to buy a building, or refinance one you own, including taking cash out where the lender allows. Cash-out availability and limits vary by lender.

Fits when

• You’re buying a small apartment building
• You want to qualify on rent
• You’re vesting in an LLC

Look elsewhere when

• The building has more than 8 units. Commercial financing may fit.

Documents

• Rent roll and leases
• Operating statement
• Entity documents
• Asset statements

Requirements vary by lender.

How CapFi shops it

I compare small multifamily DSCR options across more than 50 wholesale lenders, and we can sign up an additional lender if your building needs one. See also our investment property loans and, if you’d rather qualify on personal income, bank statement loans.

FAQs

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