5–10 Unit Multifamily Loans
At five units, underwriting generally shifts from residential-style rental DSCR to commercial multifamily analysis based on property Net Operating Income. BancorpOne uses a property-cash-flow-first underwriting framework for small multifamily and rental investment transactions.
Indicative Underwriting Matrix
Program availability, documentation, DSCR thresholds, leverage, pricing, reserves and underwriting requirements vary by lender and transaction. Website information is not a loan commitment.
Why Five Units Changes the Underwriting
A 5–10 unit apartment property is generally evaluated as commercial multifamily rather than a 1–4 unit residential investment property.
The lender reviews gross property income, vacancy, operating expenses and normalized Net Operating Income before calculating DSCR and maximum loan proceeds.
How the Deal Desk Reviews the Scenario
The deal desk separates residential-investor DSCR analysis from commercial multifamily NOI underwriting so sizing is technically consistent.
The initial review considers property cash flow, unit count, requested leverage, transaction purpose, credit, liquidity, property condition and available lender programs.
Frequently Answered Financing Questions
Verified answers to common borrower and broker inquiries regarding loan sizing, guidelines, and execution.
How is a 5–10 unit apartment loan qualified?
A 5–10 unit apartment loan is generally qualified using property Net Operating Income compared with annual debt service.
Lenders typically review the current rent roll, trailing operating history, taxes, insurance, occupancy and requested leverage.
Review 5–10 Unit Scenario →