Mixed-Use and 2-8 Unit Investor Loans

Most agency programs cap at 4 units, leaving 5-8 unit and mixed-use properties to specialty investor programs. DSCR-style underwriting still applies — the building qualifies on its own rent roll, including the commercial portion when applicable. Pricing sits between residential DSCR and commercial multifamily.

Highlights

  • 2-8 unit small multifamily eligible
  • Mixed-use with residential majority (51%+ residential income)
  • Existing rent roll and lease estoppels used to qualify
  • Up to 75–80% LTV on purchase
  • No personal income docs

Who it's for

Investors graduating from 4-unit conventional into 5-8 unit small multifamily, urban infill buyers, and investors with retail/storefront on the ground floor and apartments above.

Frequently asked questions

What’s the difference between a 5-unit DSCR and a commercial multifamily loan?

A 5-unit DSCR loan uses residential underwriting (single appraiser, no commercial DCR analysis, no recourse trigger from KPIs) at smaller loan sizes. Commercial multifamily uses a Yield Maintenance / Defeasance / DSCR-floor structure and is usually $1M+. DSCR programs are simpler and faster for 5-8 unit properties under $2M.

How is mixed-use defined?

Most programs require residential rent to make up at least 51% of gross income. Commercial space cannot exceed 35–49% of total square footage depending on the lender.

Will a vacant commercial unit kill my DSCR?

Vacant commercial space is usually credited at 0 income, which lowers DSCR. A few programs allow market-rent crediting for vacant commercial if comparable leases support it.

What loan amounts apply?

Typically $250K minimum to $3M+. Above $2M, expect more lender questions on rent roll and operating statement.

Got a mixed-use & 2-8 unit scenario?

Tell us the deal - we'll match you with the right lender and come back with current pricing.