Multi Family DSCR Terms?

Question

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.

Ben Trageser · Answer

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

Denver McClure · Answer

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.

Judah Zuckerman · Answer

sounds pretty good is it all on one parcel or separate

also was there a buydown?

Erik Estrada · Answer

Sounds about right.

Timothy Hero · Answer

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.

Matthew Drouin · Answer

@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.

Multi Family DSCR Terms?

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