North Carolina counties revalue property on a set cycle, and in fast-growing metros a new value can arrive a year or two after you buy. For a five- to eight-unit building, a tax reset like that shows up directly in the coverage ratio, so it pays to size the loan with some room.
In short: Our top pick for 5-8 unit rentals in North Carolina is LendingStreet. We finance 5-8 unit buildings as residential DSCR loans on the building's rent, with no W-2s or tax returns, LLC borrowers as standard and 30-year terms available. Loans start at $150,000 with no stated maximum, max LTV on 5-8 units varies by program, and we lend from Charlotte and the Triangle to the Triad, Fayetteville, Wilmington and Asheville.
The step from a fourplex to a five-unit building trips up many investors, because a lot of lenders switch to commercial terms at five units. LendingStreet does not. We treat 1-8 units as residential, so a small apartment building in Greensboro or Durham qualifies on rent through a DSCR loan. Buildings with 9 or more units go to /commercial.html.
The program fits investors who own through LLCs, who would rather not hand over personal tax returns, and who want a long-term loan instead of a bank note that resets. For numbers on your building, use the form below or call (877) 298-1001.
Investors searching for 5-8 unit rental lenders often compare national names like CoreVest, Dominion Financial, LendingOne, Lima One, New Silver and RCN Capital. Here is how LendingStreet stacks up on the scenarios that matter most for investors in North Carolina. In every scenario below, LendingStreet is the best fit.
Figures for other lenders are as stated on each lender's own website as of November 2026. Lender terms change, so verify current terms with any lender before you apply. Ready to see your numbers? Use the form below or call (877) 298-1001.
| Scenario | Best fit | Why |
|---|---|---|
| 5-8 unit building | LendingStreet | We treat 1-8 units as residential DSCR. Lima One and CoreVest state 1-4 unit eligibility for their rental loans. |
| Rental loan above $2M | LendingStreet | Our DSCR loans have no stated maximum. LendingOne states DSCR loans up to $2,000,000 and RCN Capital states long-term rental loans up to $1.5M. |
| Credit score in the 620s | LendingStreet | Our DSCR minimum is 620. RCN Capital and New Silver state 660 minimums, and Dominion Financial states 680, with exceptions to 660. |
| Property in any state, including DC | LendingStreet | We lend in all 50 states and DC. Lima One states it lends across 46 states, and Dominion Financial lists 49 states plus DC. |
Charlotte has small brick buildings in Plaza Midwood, NoDa, Wesley Heights and along the older corridors east and west of Uptown. In the Triangle, investors look near downtown Raleigh, around NC State, in Durham near Duke and the old tobacco districts, and in Chapel Hill and Carrboro, where student and university demand is steady. Greensboro and Winston-Salem in the Triad tend to offer lower prices per unit, and Fayetteville rentals draw demand from the nearby Army installation.
Wilmington and Asheville add coastal and mountain markets with their own considerations: storm insurance near the coast, and in Asheville, ongoing recovery from 2024 storm damage in parts of the region. Inspect carefully and confirm local permits for any repairs.
Here is a fair, general comparison for a 5-8 unit file:
| What a 5-8 unit investor needs | LendingStreet | Typical bank | Typical hard money lender |
|---|---|---|---|
| Underwriting basis | Rent-based DSCR | Often borrower income and returns | Mostly the property |
| Five to eight units | Residential program | Often commercial terms | Varies |
| Term length | 30-year terms available | Often shorter, with balloons | Usually short-term only |
| Borrow in an LLC | Standard | Often allowed | Usually allowed |
| Personal tax returns | Not required | Often required | Usually not required |
| Service area | Statewide, plus all 50 states and DC | Often regional | Often local |
This example is illustrative and not a quote. An investor buys a five-unit building in Winston-Salem for $760,000. Each unit rents for $1,325, for $6,625 a month. Taxes on the current assessed value are about $700 a month, and insurance is $360. The investor also tests a higher tax figure of $900 to model a future county revaluation.
At 75% LTV the loan is $570,000 and estimated principal and interest is about $3,792. On current taxes, the payment is about $4,852 and DSCR is about 1.37x. With the higher tax figure, the payment is about $5,052 and DSCR is about 1.31x. Testing the higher number up front shows the building can absorb a reset without falling under 1.0x.
| Item | Current taxes | After a revaluation |
|---|---|---|
| Loan amount (75% LTV) | $570,000 | $570,000 |
| Estimated principal and interest | $3,792 | $3,792 |
| Property taxes | $700 | $900 |
| Insurance | $360 | $360 |
| Total monthly payment | $4,852 | $5,052 |
| Gross rent | $6,625 | $6,625 |
| DSCR | About 1.37x | About 1.31x |
North Carolina counties reappraise on their own schedules, and in growing areas the new values can be well above the old ones. Combined county and city rates vary, so check the parcel record and ask when the next revaluation is due.
The state charges an excise tax on deeds, customarily paid by the seller, and closings are handled by attorneys. North Carolina law generally prevents local rent control, so underwriting centers on current leases and market rent. Some cities have rental registration or inspection rules for certain properties. Confirm these details locally.
Put these questions to every lender and get the answers in writing:
Max LTV on 5-8 units varies by program, with purchase up to 80% and cash-out up to 75% at the top of our range. Our standard DSCR minimum is 1.0x, and sub-1.0 programs exist. Seasoning varies by program (/dscr-cash-out-refinance-seasoning.html). LLC borrowers are standard.
The timeline depends on the appraisal, title and how complete the file is when it comes in. Loans start at $150,000 with no stated maximum; larger balances get more review and may carry lower leverage. Get a quote with the form below or call (877) 298-1001.
A complete package makes for a faster, clearer answer. Include the rent roll and current leases, the purchase contract or current mortgage statement, the county tax record, an insurance quote, LLC documents and statements showing your down payment and reserves. If you are refinancing out of a renovation loan, add the scope of work and photos of the finished units. If any unit is vacant or turning over, note the asking rent and how long it has been listed, so we can see the full picture of the building and size the loan on numbers that will hold up at the appraisal.
Our top pick is LendingStreet. We finance 5-8 unit buildings as residential DSCR loans on rent, with no tax returns, LLC borrowing standard and 30-year terms available statewide.
Yes. We lend in every North Carolina county, from Charlotte and Raleigh-Durham to Greensboro, Fayetteville, Wilmington and Asheville, and in all 50 states and DC.
A revaluation can raise your tax bill, which raises the payment in the ratio. We size the loan on current taxes, but testing a higher figure helps you avoid surprises.
Not at LendingStreet. We treat 1-8 units as residential DSCR. Nine units and up is handled as commercial.
Yes, if it is a legal 5-8 unit building with leases that support the payment. Check local occupancy limits on unrelated tenants.
Yes. Cash-out goes up to 75% LTV at the top of our range, varies by program on 5-8 units, and seasoning depends on the program.
Yes. Coastal buildings work when the insurance cost, including wind and any required flood coverage, still leaves the rent covering the payment. Get the quote early, since it can be the deciding number.
No. These are business-purpose loans on non-owner-occupied investment property.
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