Multi Family DSCR Terms?

Multi-Family and Apartment Investing
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Multi Family DSCR Terms?

Timothy Hero
Lender · United States · Member since 2020 · 1k+ posts · 499 votes

The last 12-18 months have been a little rocky in the DSCR space for 5+ units. I find DSCR most lenders are 8 to even 9% for max leverage on 5+ right now. I know of a lender around 7.3%, but curious what everyone else is seeing.

Keep in mind, we're talking DSCR, not conventional.

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Ben TrageserPro Member
Accountant · Montclair, NJ · Member since 2020 · 218 posts · 104 votes
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@Denver McClure Curious to get your thoughts here as I know you have some products

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  • Ben TrageserPro Member
    Accountant · Montclair, NJ · Member since 2020 · 218 posts · 104 votes
    1y

    @Denver McClure Curious to get your thoughts here as I know you have some products

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  • Devin PetersonBusiness Member
    Lender · Sarasota, FL · Member since 2022 · 2k+ posts · 664 votes
    1y
    Quote from @Timothy Hero:

    The last 12-18 months have been a little rocky in the DSCR space for 5+ units. I find DSCR most lenders are 8 to even 9% for max leverage on 5+ right now. I know of a lender around 7.3%, but curious what everyone else is seeing.

    Keep in mind, we're talking DSCR, not conventional.

    Local commercial banks are usually most competitive for this space. Not wholesale DSCR. But at the local commercial level, you’ll have a more in depth underwriting review process 
    [email protected]860-538-3672
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  • Devin PetersonBusiness Member
    Lender · Sarasota, FL · Member since 2022 · 2k+ posts · 664 votes
    1y
    Quote from @Timothy Hero:

    The last 12-18 months have been a little rocky in the DSCR space for 5+ units. I find DSCR most lenders are 8 to even 9% for max leverage on 5+ right now. I know of a lender around 7.3%, but curious what everyone else is seeing.

    Keep in mind, we're talking DSCR, not conventional.

    Local commercial banks are usually most competitive for this space. Not wholesale DSCR. But at the local commercial level, you’ll have a more in depth underwriting review process 
    [email protected]860-538-3672
    ProAlpha Capital56 Reviews
    WebsiteView Page
    1Reply
  • Denver McClurePro Member
    Financial Advisor · Flower Mound, TX · Member since 2018 · 659 posts · 479 votes
    1y

    Hey @Timothy Hero, we have several lenders in our network that offer DSCR on 5+ units. I would agree, on 8% being the norm, with several lenders falling in the 7's on occasion. Feel free to PM me if you'd like to talk options.

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  • Matthew DrouinPro Member
    Developer · Rochester, NY · Member since 2016 · 406 posts · 339 votes
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    @Timothy Hero community banks and credit unions are the OG DSCR lenders. DSCR recently came popular in the loan brokerage and private credit space with the rise of STRs and MTRs.

    Your local bank lenders will have the best rates typically.  I had a couple clients lock in just recently at 7.1% on 10-30 unit deals.

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  • Timothy Hero
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    Lender · United States · Member since 2020 · 1k+ posts · 499 votes
    1y
    Quote from @Matthew Drouin:

    @Timothy Hero community banks and credit unions are the OG DSCR lenders. DSCR recently came popular in the loan brokerage and private credit space with the rise of STRs and MTRs.

    Your local bank lenders will have the best rates typically.  I had a couple clients lock in just recently at 7.1% on 10-30 unit deals.


    Yeah, after brokering 300+ DSCR loans, I'm finding they are good for 1-4 units mainly. Sometimes a 5-10 unit DSCR loan is solid terms, but I'm quoting 7.4% ish for 5+ unit, DSCR.

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  • Erik EstradaBusiness Member
    Lender · Member since 2022 · 6k+ posts · 1k+ votes
    1y

    Sounds about right. 

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  • Judah Zuckerman
    Member since 2025 · 56 posts · 4 votes
    1y
    Quote from @Timothy Hero:

    The last 12-18 months have been a little rocky in the DSCR space for 5+ units. I find DSCR most lenders are 8 to even 9% for max leverage on 5+ right now. I know of a lender around 7.3%, but curious what everyone else is seeing.

    Keep in mind, we're talking DSCR, not conventional.


     sounds pretty good is it all on one parcel or separate

    also was there a buydown?


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