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By David Ghazaryan, NMLS 1486726, iQRATE Mortgages (NMLS 1862492). Updated October 29, 2026.
Short answer: A 5-8 unit building is too big for Fannie Mae and Freddie Mac 1-4 unit loans, so investors use non-QM 5-8 unit DSCR programs or small-balance multifamily loans. Published minimum DSCRs run from none to 1.25x; maximum LTVs, 75% to 80% (varies by lender). iQRATE Mortgages, a Las Vegas broker, compares these programs for Nevada, California, Texas and Florida investors.
A DSCR loan for a 5-8 unit small multifamily building qualifies on the building's rent compared with the full payment (PITIA), not on your personal income. Two kinds of lenders do this. Non-QM 5-8 unit DSCR programs keep a residential-style structure, often with 30-year fixed or ARM terms, and publish credit-score, LTV and reserve grids much like 1-4 unit DSCR loans. Small-balance multifamily loans (Fannie Mae's Small Mortgage Loan, bank and private small-balance term loans) treat the property as commercial multifamily, often with 5-, 7- or 10-year terms, occupancy tests and higher minimum DSCRs.
The table below shows only parameters each program publishes. Where a program does not publish a figure, it says "Not stated" rather than guessing.
Conventional home loans sold to Fannie Mae and Freddie Mac are written for one- to four-unit dwellings; Fannie Mae's Selling Guide says so directly. At five units the same building becomes multifamily, which changes three things:
For how standard 1-4 unit DSCR loans work in Nevada, see our DSCR loans in Las Vegas and Nevada page. Buildings that mix apartments with a shop or office are covered on our mixed-use loans page.
Varies by lender. Published parameters, not an offer. Figures are from lenders' and Fannie Mae's public program pages checked Oct 26, 2026. Lenders are not named. Where a page does not publish a figure, the table says "Not stated" rather than guessing.
| Program | Units | Minimum DSCR | Maximum LTV | Loan size | Minimum credit score | Reserves | Prepayment | State coverage |
|---|---|---|---|---|---|---|---|---|
| Program A (1-10 unit rental DSCR) | 1-10 units (program-wide; no separate 5-10 unit terms stated) | No minimum DSCR | Up to 80% purchase and rate-term; up to 75% cash-out | $100,000 to $3,500,000 | 640 | 3 to 9 months of PITIA | Typically 5/4/3/2/1; 3/2/1, 2/1 or none also offered | Every state except North Dakota and South Dakota (includes NV, CA, TX, FL) |
| Program B (5-8 unit multi-unit DSCR) | 5-8 residential; 2-8 mixed use | 1.00 (no sub-1.00 tier) | Purchase 75%, rate-term 70%, cash-out 65% (up to $1.5M) | $400,000 to $2,000,000 | 700 (720 in CT, FL, NJ) | 6 months PITIA; 9 months over $1.5M; 12 months over $2.5M | Not stated | 41 states; lists CA, TX, FL (FL overlay); Nevada not on its state lists |
| Program C (5-8 unit residential DSCR) | 5-8 residential | 1.00 | 75% purchase at 700+ FICO up to $1.5M; lower at higher loan amounts and 680 FICO | $250,000 to $3,000,000 | 680 (lowest tier on grid) | 6 months; 9 months over $1.5M | Per state prepayment matrix (varies by lender) | Licensing page lists Nevada, California, Texas and Florida licenses |
| Program D (small-balance multifamily term loan) | 5+ units | 1.20x to 1.25x | Up to 75% | Up to $10 million; 30-year fixed option up to 10 units and $3 million | Not stated | Not stated | Not stated | Does not lend in Alaska, North Dakota, South Dakota or Vermont; lists Nevada and California licenses |
| Fannie Mae Multifamily Small Mortgage Loan (agency, through approved lenders) | 5+ units, existing and stabilized | 1.25x | 80% | Up to $9 million | Not stated | Replacement reserve and tax and insurance escrows typically required at higher leverage | Yield maintenance or declining prepayment premium | Nationwide |
Varies by lender; published parameters, not an offer. iQRATE Mortgages is not affiliated with these lenders, and inclusion is not an endorsement or a commitment to lend. No interest rate, APR or payment is quoted on this page.
A DSCR loan for a 5-unit apartment building is the smallest deal that leaves the 1-4 unit world, and it is where investors most often get surprised. What lenders usually ask for:
For a small multifamily loan of 5 to 8 units in Las Vegas, Henderson or elsewhere in Clark County, start with state coverage: not every 5-8 unit DSCR program lends in Nevada. On the program pages we checked, Program A lends in every state except North Dakota and South Dakota, and Programs C and D publish Nevada licenses, while Program B lists California, Texas and Florida but not Nevada (varies by lender).
Budget for property tax as part of PITIA. A 5-8 unit rental is not owner occupied, and for fiscal 2026-27 Clark County's general tax cap is 8.0% versus 3.0% for owner-occupied homes, so the tax line can grow faster than on a primary residence. Ask how each lender counts short-term rental units, since several 5-8 unit programs exclude short-term rental income.
In California, Texas and Florida the same table applies; watch state overlays such as Program B's 720 minimum FICO in Florida. iQRATE works with investors from our Las Vegas office across Nevada (Las Vegas, Henderson, Nevada), California (California, Los Angeles, San Diego), Texas (Texas, Dallas, Houston) and Florida (Florida, Miami).
Holding several rentals? See portfolio loans, investor loans and our non-QM loans overview. Related DSCR guides: no-ratio DSCR loans, foreign national DSCR loans and Miami condo DSCR loans. Call (702) 766-3744 or start an application.
Two groups lend on 5-8 unit buildings. Non-QM DSCR lenders publish 5-8 unit or up-to-10-unit rental programs that qualify on rent, and small-balance multifamily lenders, including Fannie Mae's Small Mortgage Loan through its approved lenders, treat the building as commercial multifamily. Terms vary by lender. iQRATE Mortgages, a licensed broker, compares these programs for Nevada, California, Texas and Florida investors.
Fannie Mae's single-family Selling Guide only covers dwellings with one to four units. A building with five or more units falls under multifamily rules instead: Fannie Mae's Small Mortgage Loan requires 5 or more units, a stabilized property, a 1.25x minimum DSCR and at most 80% LTV, and Freddie Mac stopped taking new Small Balance Loan applications on April 30, 2026.
Yes. Several lenders publish DSCR programs for 5-8 residential units, and one published program covers rental loans for 1 to 10 units. A 5-unit building is usually appraised as small residential income property, so expect a rent roll, an income and expense statement, leases and photos of every unit. Approval depends on the property, credit, reserves and experience.
Published minimums on the program pages we checked range from no minimum DSCR to 1.00, 1.20x to 1.25x, and 1.25x for Fannie Mae's Small Mortgage Loan. Maximum LTV runs from 75% to 80% on purchases, with lower limits on cash-out and larger loans. These are published parameters, not an offer, and they vary by lender.
Check each lender's footer or licensing page, because coverage differs. Of the programs we checked, one lends in every state except North Dakota and South Dakota, one lists Nevada, California, Texas and Florida licenses, one excludes only Alaska, North Dakota, South Dakota and Vermont, and one lists California, Texas and Florida but not Nevada for its multi-unit DSCR program.
Often not. Two published 5-8 unit programs we checked say short-term rental income is not eligible, while another program covering up to 10 units does include short-term rentals. If your Las Vegas building has nightly units, ask about short-term rental rules before you apply, and confirm local permits. Rules vary by lender.
Usually yes. Two published 5-8 unit programs require an experienced investor who has owned and managed investment real estate for at least 1 year in the last 3 years, and both exclude first-time investors. Fannie Mae's multifamily guide also reviews the borrower's experience owning or managing similar-size rental properties. First-time investors should ask each lender directly.
Generally not. Regulation Z exempts credit extended primarily for a business purpose, and the CFPB's official interpretation treats credit to buy, improve or maintain a non-owner-occupied rental as business purpose. That is why 5-8 unit DSCR loans are for investment property only. If you plan to live in one of the units, ask about owner-occupied options instead.
Business-purpose loans for non-owner-occupied investment property only; investor loans for business purposes only, not for owner-occupied homes. Credit extended primarily for a business purpose is exempt from Regulation Z under 12 CFR 1026.3(a). Information is educational and subject to change; it is not a commitment to lend. All loans subject to credit approval, property eligibility and lender guidelines; programs, terms and eligibility vary by lender and borrower qualification and may change without notice. No interest rate, APR or payment is quoted on this page. Consult a CPA or attorney about tax, entity and legal questions. Lender and agency facts checked October 26, 2026; page updated October 29, 2026. iQRATE Mortgages, NMLS 1862492. David Ghazaryan, NMLS 1486726. (702) 766-3744. Equal Housing Opportunity. We do business in accordance with the federal Fair Housing Act and the Equal Credit Opportunity Act. Verify licensing at NMLS Consumer Access.
