West Virginia's small multifamily is mostly older houses split into units near WVU in Morgantown and Marshall in Huntington, duplexes in Charleston and Parkersburg, and growing commuter rentals in the Eastern Panhandle. A DSCR loan qualifies them on combined rent.
In short: LendingStreet makes DSCR loans on 2-4 unit rentals throughout West Virginia, qualifying the building on the total rent of every unit rather than your income. Expect up to 80% LTV on purchases, up to 75% on cash-out, a 620 credit minimum and a 1.0x standard minimum ratio, with LLC borrowers welcome. In West Virginia, the property tax class for rentals and flood exposure in river valleys are the items to check first.
Prices are among the lowest in the country, so a duplex or fourplex in West Virginia can often cover a DSCR payment with room to spare. Student demand in Morgantown and Huntington and commuter demand in Martinsburg and Charles Town support rents.
The tradeoffs are older buildings, lower rents and thinner resale markets outside the university and Panhandle areas. Many valley towns sit in flood zones, and flood coverage can change the numbers.
The Eastern Panhandle is the state's fastest-growing area, as households priced out of the Washington, D.C., region move to Martinsburg, Charles Town and Shepherdstown and commute by rail or car. Duplexes there rent at higher levels than elsewhere in the state.
Most small multifamily is in the university towns, the Kanawha Valley and the Eastern Panhandle.
| Area | Typical 2-4 unit stock | What to watch |
|---|---|---|
| Morgantown | Older houses split into units near WVU | Student turnover; city rental rules |
| Huntington | Student rentals near Marshall | Flood zones near the river |
| Charleston | Older duplexes | Moderate prices; flood zones |
| Martinsburg and Charles Town | Duplexes renting to DC-area commuters | Growth market |
| Parkersburg and Wheeling | Older multifamily at low prices | Few comparable sales |
Underwriting adds up the rent from all units, using signed leases or the appraiser's market rent estimate, and compares it with the monthly payment of principal, interest, taxes, insurance and dues. At 1.0x the rent exactly covers the payment; most programs set that as the floor, with sub-1.0 options for some files.
Expect a minimum credit score of 620, at least 20% down on a purchase (up to 80% LTV), and up to 75% LTV on a cash-out refinance. There is no income documentation, loans start at $150,000, and you can close in an LLC. These are business-purpose loans on non-owner-occupied property: you rent every unit rather than living in one.
West Virginia taxes owner-occupied residential property at a lower class than rentals. Non-owner-occupied property inside a city is generally taxed at a higher class, so an investor's bill can be higher than the seller's if the seller lived there. Ask the county assessor for the bill as a rental.
West Virginia charges an excise tax on deed transfers at the state and county level. Ask your closing attorney who pays under your contract. Flood insurance in the river valleys can be significant.
County assessors value property annually, and Eastern Panhandle values have risen with commuter demand. Use the current bill for the address and ask whether a new assessment is pending.
This example is illustrative and not a quote. An investor buys a duplex in Morgantown for $280,000 with 20% down, so the loan is $224,000. The two units rent for $1,200, $1,200 a month, $2,400 in total. Taxes and insurance run about $340 a month.
On a 30-year amortization, estimated principal and interest is about $1,566, for a total payment of about $1,906. Dividing $2,400 of rent by that payment gives a DSCR of about 1.26x, above the 1.0x standard minimum. Low prices and student rents give this duplex comfortable coverage. A property in a flood zone would add a flood premium to the payment.
| Item | Amount |
|---|---|
| Purchase price | $280,000 |
| Loan at 80% LTV | $224,000 |
| Down payment | $56,000 |
| Combined rent (2 units) | $2,400 a month |
| Estimated principal and interest | About $1,566 |
| Taxes and insurance | $340 |
| Total monthly payment | About $1,906 |
| DSCR | About 1.26x |
West Virginia landlord-tenant law sets deposit and notice rules, and the state has no rent control. Morgantown runs a rental housing program with registration and inspections, and other cities enforce housing codes.
Older buildings often have outdated wiring and plumbing, so a thorough inspection matters. Ask about flood history and whether the property is in a mapped flood zone.
In Morgantown, many student rentals are older houses split into several units over the years. Confirm the legal unit count with the city before you count rent from every unit, since only legal units count.
More units generally mean more rent per dollar of price and a better DSCR, along with more tenants to manage. Duplexes attract the most resale buyers; triplexes and fourplexes often cash flow best. If you are looking at 5 to 8 units, residential DSCR programs still apply with max LTV that varies by program, as our West Virginia 5-8 unit page explains. Nine or more units moves into commercial lending.
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.
Most files move faster when these are in hand before the appraisal is ordered.
Generally yes. Owner-occupied homes are in a lower class, and non-owner-occupied property in a city is taxed at a higher class.
Morgantown runs a rental housing program with registration and inspections. Confirm current requirements with the city.
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.
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.
Yes. It qualifies on combined rent like any other 2-4 unit property.
Yes. West Virginia charges a state excise tax on deed transfers, and counties add their own. Who pays is set by the contract and local custom, so ask your closing attorney for the figure early.
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.
Occupied units use their leases, and empty units usually use the appraiser's market rent estimate from the rent schedule. Treatment varies by program, so tell us about any vacancy up front.
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