DSCR Loans for Multi-Family Properties: Complete 2-4 Unit Guide
Updated: January 5, 2025•11 min read•By Capital Bridge Solutions Team
Multi-family properties (2-4 units) are ideal for DSCR loans because multiple rental units generate higher combined income, resulting in stronger DSCR ratios and easier qualification. Whether you're financing a duplex, triplex, or 4-plex, DSCR loans let you qualify based on the property's total rental income—no personal income verification required.
Why Multi-Family Properties Excel with DSCR Loans
- Multiple Income Streams: 2-4 units = 2-4x the rental income
- Better DSCR Ratios: Higher income improves debt coverage
- Vacancy Protection: One vacant unit doesn't kill cash flow
- Easier Qualification: Strong DSCR = better rates and terms
Multi-Family DSCR Loan Requirements
Standard Requirements
- • Credit Score: 620 minimum (640+ preferred)
- • Down Payment: 20-25%
- • DSCR Ratio: 1.0+ (1.25+ for best rates)
- • Reserves: 6-12 months PITIA
- • Property Type: 2-4 units
Multi-Family Advantages
- • Higher Income: Multiple units = stronger DSCR
- • Better Rates: Strong DSCR = lower rates
- • Easier Approval: More income cushion
- • Scale Faster: More units per property
- • Risk Mitigation: Vacancy protection
Ready to Finance Your Multi-Family Property?
Get pre-approved for a multi-family DSCR loan in 24-48 hours. No income verification, just strong rental income.