Multifamily
DSCR investor loans
A DSCR investor loan is a mortgage on a rental property underwritten mainly on the property's debt service coverage ratio, meaning net operating income divided by annual debt service, rather than on the borrower's personal income, with separate lender programs for 2-4 unit and 5+ unit properties.
Key facts
Figures as of 2026-10-31. Program rules change by notice, so an advisor confirms current terms with lenders before you rely on any figure.
| Item | Figure | Source and date |
|---|---|---|
| DSCR formula | Net operating income divided by annual debt service | Standard underwriting definition; as of 2026-10-31 |
| Agency multifamily minimum DSCR (reference) | 1.25x | Corin sizing estimate; as of 2026-10-31 |
| Bridge exit test (stabilized) | Debt yield 9.5%–10.5% and 1.25x DSCR | Corin estimate, varies by lender; as of 2026-10-31 |
| Product boxes | 2-4 unit and 5+ unit, lender specific | Corin sizing estimate; as of 2026-10-31 |
How lenders use DSCR
Instead of reviewing tax returns and employment income, the lender looks at what the property earns against what the loan costs. A ratio above one means the property covers its debt service. Minimums, leverage and pricing vary widely by lender, property type, borrower experience and credit profile.
Which box fits
- 2-4 unit rental: investor DSCR products from specialty and non-bank lenders
- 5+ unit apartment: agency, HUD, bank or bridge, depending on size and business plan
- Short-hold or value-add: bridge first, then a DSCR or agency refinance
What an advisor adds
DSCR lenders price on many variables. Corin collects the property financials, matches the loan to a lender whose box fits, and explains the costs before you commit. The lender makes the credit decision.
Frequently asked questions
What DSCR do lenders require?
It varies by lender and product. Agency multifamily generally needs at least the agency minimum shown here, while investor DSCR programs differ. Ask for the lender's box.
Do DSCR loans require personal income documentation?
Programs designed around DSCR usually do not, but lenders still review credit, liquidity and experience.
Can I use a DSCR loan on a short-term rental?
Some lenders allow it with adjusted income calculations. Others do not. Specify the use up front so the lender can size it properly.
Related programs
- Multifamily bridgeFloating, interest-only debt for value-add apartment business plans.
- Fannie Mae multifamilyFixed-rate, non-recourse agency loans for stabilized apartment communities.
- Freddie Mac multifamilyFixed-rate, non-recourse agency loans from Freddie Mac's lender network.
- Fix-and-flip loansPurchase-plus-rehab financing sized on as-is and after-repair value.
- Multifamily financingHUD, agency, bridge and DSCR options for apartment owners.
Talk through your deal with an advisor
Send the basics and a licensed Corin advisor reviews which programs and lenders may fit, or size the loan yourself first.