New Hampshire's small multifamily stock is mostly old mill-city housing: two- and three-family wood-frame buildings in Manchester and Nashua, and older multi-unit houses in Concord, Dover and Rochester. A DSCR loan finances them on the combined rent, not your income.
In short: Yes, LendingStreet finances duplexes, triplexes and fourplexes across New Hampshire with DSCR loans that qualify on the combined rent of all units. Purchases go up to 80% LTV and cash-out refinances up to 75%, with a standard 1.0x minimum DSCR, a 620 minimum credit score and no W-2s or tax returns. In New Hampshire, the property tax bill and heating costs carry more weight in the math than almost anywhere else in the country.
The state's cities grew around textile mills, and the housing built for mill workers was dense: multi-family frame houses, many of them with stacked porches, close to the river and downtown. That stock is still the backbone of the rental market in Manchester, Nashua and the Seacoast towns.
Rental vacancy has been tight across southern New Hampshire for years, which supports rents. Against that, New Hampshire has no broad income or sales tax, so local property taxes carry much of the public budget and bills are high relative to value. On a three-family, the tax line can be one of the largest pieces of the monthly payment, so it has to be part of the analysis from the start.
Southern New Hampshire holds most of the state's small multifamily. North of Concord, buildings are smaller, older and sell less often.
| Area | Typical 2-4 unit stock | What to watch |
|---|---|---|
| Manchester | Three-family frame houses on the West Side and in Center City | Old wiring, lead paint and heating systems |
| Nashua | Two- and three-family houses in the Tree Streets and French Hill | Strong demand from Massachusetts commuters |
| Concord | Older multi-unit houses near downtown and the State House | Steady state government tenants |
| Dover, Rochester and Somersworth | Mill-era multifamily near downtowns | Lower prices; check heating fuel type |
| Portsmouth and the Seacoast | Smaller, pricier two-family stock | High prices make coverage tight |
The loan qualifies on the debt service coverage ratio: the combined monthly rent of every unit divided by the full monthly payment, including principal, interest, taxes, insurance and any association dues. The standard minimum is 1.0x, and sub-1.0 programs exist for buildings that fall a little short.
Purchases go up to 80% LTV, cash-out refinances up to 75% and rate-and-term refinances up to 80% on some programs. Loans start at $150,000 with no stated maximum, 30-year terms are available, the minimum credit score is 620 and no W-2s or tax returns are needed. LLC borrowers are standard. Our investor loans are business-purpose loans on non-owner-occupied property, so every unit is a rental.
New Hampshire towns and cities must revalue property at least every five years, and a revaluation can move a bill sharply after you buy. Ask the assessing office when the last revaluation happened and whether one is scheduled. Tax bills vary a great deal from town to town, so compare the actual bill, not a regional average.
The state's real estate transfer tax is charged on the sale price and is split between buyer and seller by statute. Your title company or closing attorney will itemize it. Insurance on older wood-frame multifamily depends heavily on roof age, wiring and the heating system, and oil tanks can raise questions with carriers.
This example is illustrative and not a quote. An investor buys a three-family in Manchester for $600,000 with 20% down, so the loan is $480,000. The three units rent for $1,750, $1,750, $1,750 a month, $5,250 in total. Taxes and insurance run about $1,030 a month.
On a 30-year amortization, estimated principal and interest is about $3,356, for a total payment of about $4,386. Dividing $5,250 of rent by that payment gives a DSCR of about 1.20x, above the 1.0x standard minimum. Taxes alone are more than a third of the non-loan costs here. In a town with a higher bill, or after a revaluation, the same building could fall close to 1.0x.
| Item | Amount |
|---|---|
| Purchase price | $600,000 |
| Loan at 80% LTV | $480,000 |
| Down payment | $120,000 |
| Combined rent (3 units) | $5,250 a month |
| Estimated principal and interest | About $3,356 |
| Taxes and insurance | $1,030 |
| Total monthly payment | About $4,386 |
| DSCR | About 1.20x |
New Hampshire has no rent control, but state law generally requires a stated legal reason to end most residential tenancies, with limited exemptions. That makes tenant screening and lease terms important on a building you plan to hold.
Most of the stock was built before 1978, and New Hampshire has its own lead poisoning prevention rules in addition to the federal disclosure requirement. Budget for lead-safe work on turnovers, and check the heating fuel. Oil and propane costs swing with the market, and a building where the owner pays heat carries that risk directly.
Manchester and Nashua enforce housing codes through city inspectors, and some buildings have had units added without permits over the decades. Confirm the legal unit count with the city before you count rent from every unit.
A two-unit building is the simplest to buy, insure and sell. Three and four units usually improve the ratio because one roof, one tax bill and one insurance policy cover more rent. Beyond four units, residential DSCR programs still reach 8 units, with max LTV that varies by program, and our New Hampshire 5-8 unit page covers those buildings. At 9 units and up the loan becomes commercial.
Many investors buy a tired building with short-term rehab financing, lease the units and then refinance into a long-term DSCR loan. Cash-out tops out at 75% LTV and rate-and-term at up to 80% on some programs, and how long you must own the property before a cash-out varies by program.
Gathering these early keeps the appraisal and underwriting moving.
They are the biggest local variable. Because taxes are part of the monthly payment, a high bill lowers the ratio directly. Use the actual current bill and ask whether a revaluation is coming.
By statute it is split between buyer and seller. Your closing attorney or title company will show your share on the settlement statement.
Purchases go up to 80% LTV, so at least 20% down, with loans from $150,000. A low DSCR or high taxes can require more, and you will also need funds for closing costs and reserves.
No. DSCR loans qualify on the property's rent, with no W-2s, pay stubs or tax returns. Credit, reserves and the property itself are what underwriting reviews.
Often, yes, if the building is rentable and appraises. Units that are not habitable may need a bridge or rehab loan first, then a DSCR refinance once leased.
Owner-paid heat is not in the ratio, but it comes out of your cash flow. Ask for the past year's fuel bills before you offer.
Some programs allow it, usually with stronger credit or more reserves. Putting more down is the other common fix, since it lowers the payment the rent has to cover.
No. Our investor loans are business-purpose loans on non-owner-occupied property, so every unit must be rented and you cannot occupy any of them. If you plan to live in the building, a consumer mortgage is the right product instead.
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