2026 Small-Balance & Commercial Multifamily Desk · Stephen R. Mannenbach, J.D., MBA · Loan Daddy LLC

5–9 Unit & 10–100+ Unit Commercial Multifamily DSCR & Bridge Loans

5–9 Unit Residential/Commercial Hybrid DSCR Loans and 10–100+ Unit Commercial Multifamily shelves bridge the gap between 1–4 unit investor loans and rigid Agency debt—qualifying apartment buildings strictly on Net Operating Income (NOI ÷ Annual Debt Service) with 30-year amortization and zero personal tax return requirements.

Launch 5–100+u Multifamily NOI & Debt-Yield Analyzer →Match Across 45+ Wholesale Shelves

2026 Wholesale Rate Band

6.500% – 8.125% (30-Yr Amort / 5, 7, 10-Yr Fixed & 30-Yr Fixed)

Maximum Leverage

75% – 80% Purchase LTV · 70% – 75% Cash-Out LTV

Minimum DSCR & FICO

1.15x – 1.25x NOI DSCR (8.5%+ Debt Yield) · 660+

Loan Amount Range

$400,000 – $25,000,000+

Key Institutional Credit-Box Highlights

✓True 30-year fixed and hybrid 5/7/10-year fixed structures on 5–9 unit small-balance apartment buildings
✓Underwritten on T-12 Net Operating Income (NOI) and Form 71B / commercial narrative appraisal
✓Rubs/utility bill-back, laundry, storage, and RUBS ancillary income credited toward qualifying NOI
✓Value-add multifamily bridge facilities up to 80% LTC + 100% CapEx rehab budget for unit turns

Seasoning & Release Structure:Value-Add Bridge-to-Permanent Takeout Available upon 85%+ Occupancy

Prepayment Penalty Structures:Step-Down (5/4/3/2/1 or 3/2/1), Yield Maintenance, or Soft-Step Bridge

Frequently Asked Questions — Multifamily DSCR Loans

How is DSCR calculated on a 5–9 unit multifamily loan vs. a 1–4 unit rental?

While 1–4 unit DSCR loans divide gross monthly rent by monthly PITIA, 5–9 unit and 10+ unit multifamily DSCR loans divide annual Net Operating Income (Gross Scheduled Rent + Ancillary Income − Vacancy − Operating Expenses) by annual principal and interest debt service, typically requiring a 1.15x to 1.20x minimum NOI DSCR.

Are personal tax returns required for 5–9 unit DSCR apartment loans?

No. Our wholesale 5–9 unit small-balance commercial DSCR shelves are business-purpose asset-based loans that require only the property rent roll, trailing 12-month operating statement (T-12), entity documents, and credit/liquidity verification.

Key Institutional Credit-Box Highlights

Frequently Asked Questions — Multifamily DSCR Loans

How is DSCR calculated on a 5–9 unit multifamily loan vs. a 1–4 unit rental?

Are personal tax returns required for 5–9 unit DSCR apartment loans?

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