I'm under contract on a $1.05m pair of 6-plexes in great shape with gross rents at $10,320/month. I'm working with a broker who assured me that he could find a 30-year fixed rate DSCR loan at 20% down and around 7% interest. His business is in those loans for small multifamily, but evidently things change between 5 units and 6 units. None of his existing lenders will lend at those terms for 6-plexes. The downpayments go from requiring 20% down to 25% down and the rates go from around 7% to around 8%. Many lenders won't even lend to 6-plexes because the price per unit is too small for them, and the ones that do won't bundle closing costs, so closing costs can be well over 4%.

We thought we found a lender that would get close to the terms I'm looking for (20% down, just over 7% interest, though still 2 loans). It's someone the broker hadn't worked with before. Evidently there's a reason: the lender has been hard to communicate with all along and hasn't been responding for a few days even with closing fast approaching. I'm worried that lender isn't going to come through.

I'm reaching out here for advice, and to see if anyone knows any lenders that do 25- or 30-year fixed rate DSCRs for 20% down on 6-plexes?

The next step after this post is going to be to propose that the seller carry 5% on an accelerated schedule, but I don't know what their appetite will be for that.

If none of that works, I'm afraid I'm going to have to walk away from the deal. The numbers just don't work at 25% down/8% interest/4% closing costs.