Five To Eight Units, Financed On The Rents.
DSCR financing for the residential buildings that fall just outside standard one-to-four unit lending.
The gap between fourplex and commercial, covered
Qualifying is based on what the building brings in, not your tax returns.
- For residential properties with five to eight units.
- Investment properties held for a business purpose only.
- Qualifying uses DSCR, comparing gross rents against the full principal, interest, taxes, insurance and association payment.
- Available for purchase, rate-and-term refinance, and cash-out refinance.
- Loan amounts from $400,000 to $2,000,000.
- Neither the borrower nor family members may live in the property.
Five to eight residential units
Investment and business purpose only
Qualified on the rent roll
Purchase, rate-term or cash-out
Loan amounts $400K to $2M
Mixed-use properties not eligible
What is the Saxton 5-8 Unit Property Loan?
DSCR financing for small multifamily buildings above the four-unit line.
There is an awkward gap in property lending. Up to four units, a property is treated as residential and financing is straightforward. Past eight units, it is clearly commercial and there is a whole market for it. Between five and eight, many lenders simply do not have a product, and investors get bounced between two departments that both say no.
This program covers that range. It is a DSCR loan, which means qualifying is driven by the building rather than by your personal income documentation. The debt service coverage ratio compares the gross rents against the full monthly obligation, counting principal, interest, taxes, insurance and any association dues. Where a loan carries an interest-only feature, the calculation reflects that structure.
It is strictly an investment product held for a business purpose. Neither you nor a family member may live in the property, mixed-use buildings are not eligible, and the range runs from four hundred thousand to two million dollars. It is available for a purchase, a rate-and-term refinance, or a cash-out refinance.
Why choose the Saxton 5-8 Unit Property Loan?
For investors who found the right building and then could not find the right loan.
Covers The Awkward Range
Five to eight units is where a lot of investors get stuck. This program is built specifically for that band.
The Building Qualifies Itself
DSCR means the rent roll carries the file. Your personal tax returns are not the center of the conversation.
All Three Purposes
Purchase, rate-and-term refinance and cash-out refinance are all available, so it works whether you are buying or repositioning.
Clear Loan Range
Four hundred thousand to two million, which fits the realistic price band for small multifamily in most markets.
We Will Run The Ratio First
The coverage ratio decides most of this. Send us the rents and the expected payment and we can tell you quickly where it lands.
Buy Or Reposition
Purchase, rate-and-term and cash-out are all available, so the same product works whether you are acquiring or restructuring.
Hear From Homeowners Like You
Frequently Asked Questions
Straight answers about financing a five to eight unit building.
Four units and under is conventionally treated as residential lending. Above that, most standard programs stop. This product exists precisely to cover the five to eight unit range that falls between the two.
It compares the gross rents against the full monthly payment, including principal, interest, taxes, insurance and any association dues. Loans with an interest-only feature reflect that payment structure in the calculation.
No. This is a business-purpose investment product, and neither you nor a family member may occupy the property.
From four hundred thousand dollars up to two million dollars.
Yes. Purchase, rate-and-term refinance and cash-out refinance are all eligible purposes.
Mixed-use properties are not eligible under this program. It has to be residential units throughout.
The qualifying analysis is driven by the property’s rents rather than by personal income documentation, which is the core of how a DSCR loan works.
Find out what you qualify for
If you have a five to eight unit building under contract or in your sights, send us the rent roll and we will run the coverage ratio.
Get Pre-Qualified*Loan amounts, rates, terms, and eligibility are subject to credit approval, property and rental income verification, appraisal, and program guidelines. This is a business-purpose investment product; owner or family occupancy is not permitted and mixed-use properties are not eligible. Debt service coverage requirements apply. Geographic restrictions may apply in certain jurisdictions. Not all applicants will qualify. Saxton Mortgage, LLC is an Equal Housing Lender.