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DSCR ≥ 1.150 · Investment (Business Purpose)

5-9 Residential Units

Small-balance multifamily for 5–9 residential units. Domestic LLC vesting with personal guarantor. Investment only — no owner occupancy of any unit.

  • 75% Purchase
  • 70% Cash-Out
SCORE
700
75% Purchase
Max Loan
$2.5M
70% Cash-Out
Max LTV
75%
—
DSCR
≥ 1.150
Min Coverage

Guidelines effective 2025-07-01.

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Highlights

What makes this program work

  • 5–9 residential units
  • DSCR ≥ 1.150
  • 30yr & 15yr Fixed, 10yr IO option
  • Investment (Business Purpose) only — no owner occupancy
  • Domestic LLC vesting with personal guarantor (25% min)
  • 12-month seasoning on refinance
  • Max 2 vacant units (75% market rents for DSCR)
  • U.S. Citizen or Permanent Resident Alien
Ideal scenarios

When to reach for Multi-Fam 5-9 Units

  • Small multifamily investors acquiring 5–9 residential units
Multi-Fam 5-9 Units matrix

LTV / CLTV matrix

Max LTV by FICO, loan amount, and scenario. Live matrices are published in the TQL partner portal and updated in lock-step with underwriting.

LTV Matrix

Max LTV by credit score, loan amount, and scenario

ScoreLoan AmountPurchaseRate/TermCash-Out
700≥ $350,000 – $2,500,00075%75%70%
680≥ $350,000 – $2,500,00070%70%65%
Program Details

5-9 Residential Units · DSCR · QR Guide

Product Type
30yr & 15yr Fixed Rate
Interest Only
30-year term, first 10 years IO. Qualify DSCR based on the interest-only payment.
Property Lease Requirements
  • Use lower of estimated market rent or lease agreement
  • Unleased — use 75% of market rents
  • Copies of any existing leases must be provided (both purchase and refi transactions)
  • Short-term rental income not eligible
Vacancy
Max 2 vacant units. Use 75% of market rents for DSCR calc.
First Time Investor & FTHB
Not Allowed
Non-Arm's Length
Not Allowed
Seasoning
Refinance requires 12 month seasoning
Cash-In-Hand
—
Occupancy
Investment (Business Purpose) — borrowers cannot occupy any of the units.
Eligible Borrower
U.S. Citizen, Permanent Resident Alien
Vesting
Domestic LLC Only — see guidelines for details. Personal Guarantor required with minimum 25% ownership.
Acreage / Rural
Max 2 acres. Rural property Not Allowed.
Appraisal / Property Valuation
  • FHLMC 71A, FHLMC 71B, FNMA 1050 or similar short form used to appraise 5+ residential properties
  • Narrative report can be utilized but not required for 2–8 Mixed Use
  • General Purpose Commercial Forms (i.e., GP Commercial Summary Form available from CoreLogic a la mode)
  • Rent Roll or Operating Statements (Income & Expense reports)
  • Appraiser must be certified with 2+ years experience on these property types and carry $1M E&O policy
  • Review — commercial sales and income BPO or second appraisal
  • PA & NC must use a full commercial evaluation product instead of a commercial BPO
Property Types & Conditions
  • Property needs a Min C2 and must not show excessive deferred maintenance or health & safety issues (as noted by appraiser, e.g., broken windows, stairs)
  • Properties that store or use hazardous materials (e.g., Dry Cleaners, Laundromats) are Not Allowed
  • Structural deferred maintenance (foundation, roof, electrical, plumbing) — Not Allowed
Commercial Use Type
Not Allowed
Credit Tradelines
Standard: 3 tradelines reporting for 12+ months or 2 tradelines reporting for 24+ months, all with activity in the last 12 months.
Seasoning of Funds
Sourced or seasoned for 60 days
State Overlay
CT, FL, NJ: Max LTV 70% Purchase / 65% Refinance
Ineligible States / Locations
IL, NY, Baltimore City MD, Philadelphia PA, HI lava zones 1 & 2
Multi-Fam 5-9 Units guidelines

Full guidelines and product guide

The complete Multi-Fam 5-9 Units guideline matrix lives in the TQL partner portal — open it for the full searchable experience.

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Multi-Fam 5-9 Units FAQ

Common scenarios and answers

  • Small multifamily investors acquiring 5–9 residential units