DSCR Loans for Multifamily Properties: What You Need to Know in 2025

DSCR Loans in 2025: Multifamily Made Easy.

Want to buy a duplex, triplex, or even a 24-unit building — without handing over piles of income docs? With a DSCR loan, you can. In this quick blog, we’ll break down exactly how to get a DSCR loan for multifamily real estate in 2025 (and why it's one of the smartest plays for investors right now).

What Is a DSCR Loan (and Why Multifamily Investors Love Them)?

A DSCR (Debt Service Coverage Ratio) loan is based on how much your property earns, not what you make personally. If the rent covers the mortgage, you’re golden—no W2s, no tax returns, no headaches.

Why this rocks for multifamily:

• More doors = more rent — helping you hit DSCR minimums faster.

• Flexible financing — many lenders allow up to 24 units.

• Fast approvals — based on property cash flow, not personal red tape.

How to Get a DSCR Loan for a Multifamily Property (Step-by-Step)

Here’s how the process usually works:

1. Analyze the property — Use rental comps and a DSCR calculator to make sure the deal cash flows.

2. Get pre-qualified — Apply with a lender (like DSCR Investor Loanz) to see your loan options.

3. Order the appraisal — Make sure your appraisal includes a rent schedule to verify income potential. For 5+ unit properties, appraisers typically use a commercial multifamily form like the 71A or 71B form.

4. Submit leases or rental projections — Show the lender how the building will generate cash flow.

5. Close the loan — Once approved, you’ll sign, fund, and officially own your new multifamily property!

💡 Pro Tip: Working with a broker who knows DSCR loans can help you shop rates and close faster.

What Lenders Really Want to See

Here’s what matters most to get approved:

• Your DSCR ratio (Net Operating Income ÷ Debt Payments)

• Lease agreements or market rent estimates

• A clean appraisal with a rent schedule

💡 Heads up: Some lenders may allow projected rents for underwriting—but policies vary. Strong leases and rent comps always strengthen your file.

Real-World DSCR Tips

• Focus on fully rented or high-demand areas to boost DSCR ratios

• Always make sure your appraisal includes a detailed rent schedule

• The stronger the cash flow, the stronger your loan terms

Run Your Numbers Like a Pro

Want to see if your deal stacks up?

👉 Book a DSCR Strategy Call today. Your next multifamily investment is closer than you think.