Pennsylvania is full of buildings that were never designed as apartments: rowhomes, twins and old mansions split into five, six or eight units. Financing them well means a lender that is comfortable with conversions and understands that transfer tax can be one of the largest checks at closing.
In short: LendingStreet is our top pick for 5-8 unit rentals in Pennsylvania. We treat 5-8 unit buildings as residential DSCR loans that qualify on the building's rent, with no W-2s or tax returns. LLC borrowers are standard, 30-year terms are available, and loans start at $150,000 with no stated maximum. Max LTV on 5-8 units varies by program, and we lend in Philadelphia, Pittsburgh, the Lehigh Valley, Harrisburg, Scranton, Erie and everywhere in between.
Small apartment buildings make up a big share of Pennsylvania's rental stock, and many investors move into them after a few duplexes. LendingStreet keeps 5-8 units inside our residential DSCR program, so the building qualifies on its rent rather than on your W-2 or tax return. If the building has 9 or more units, our commercial team handles it at /commercial.html.
Owners who hold through LLCs, who are refinancing a renovation loan, or who want to replace a bank note that is coming due are a strong fit. Request a quote with 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 Pennsylvania. 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. |
In Philadelphia, small multi-unit buildings are common in West Philadelphia near the universities, in Germantown and Mount Airy, in Fishtown and Kensington, and in South Philadelphia, often as converted rowhomes, twins or corner buildings with a storefront. Pittsburgh has old houses split into apartments in Lawrenceville, Bloomfield, Oakland, Friendship and on the North Side, plus walk-ups in older boroughs along the rivers.
Allentown, Bethlehem and Easton in the Lehigh Valley, plus Reading, Lancaster, Harrisburg, Scranton, Wilkes-Barre and Erie, offer small buildings at lower prices per door. Much of the stock was built before 1940, so condition and conversion history matter.
Older conversions bring a specific set of questions: separate meters or a single owner-paid boiler, fire separation and egress between units, and whether each apartment was legally created. Owner-paid heat and water raise the building's operating costs, so tell us who pays which utilities when you send the rent roll. A clean conversion with separate meters and a matching license is usually the easiest kind of file to approve.
A general look at how the usual options handle five- to eight-unit buildings:
| Key need | LendingStreet | Typical local bank | Typical hard money lender |
|---|---|---|---|
| Qualification | Building rent (DSCR) | Often personal and business income | Mostly the property |
| Converted buildings with 5-8 units | Residential DSCR if legal units | Often commercial review | Varies |
| Loan term | 30-year terms available | Often short terms with resets | Usually short-term only |
| LLC borrowers | Standard | Often allowed | Usually allowed |
| Tax returns needed | No | Often yes | Usually no |
| Coverage | All 67 counties, plus all 50 states and DC | Often regional | Often local |
This example is illustrative and not a quote. An investor buys a six-unit converted building in West Philadelphia for $900,000. Each unit rents for $1,350, so gross rent is $8,100 a month. Taxes are budgeted at $1,050 a month and insurance at $400.
At 75% LTV the loan is $675,000, estimated principal and interest is about $4,491 and the payment is about $5,941, for DSCR of about 1.36x. At 70% LTV the loan is $630,000, the payment about $5,641 and DSCR about 1.44x.
Cash to close is where Philadelphia stands out. If the buyer pays half of a combined transfer tax of more than 4%, that share alone can top $20,000 on this price, on top of the down payment, title and other costs. Budget it before you make an offer.
| Item | 75% LTV | 70% LTV |
|---|---|---|
| Loan amount | $675,000 | $630,000 |
| Estimated principal and interest | $4,491 | $4,191 |
| Taxes | $1,050 | $1,050 |
| Insurance | $400 | $400 |
| Total monthly payment | $5,941 | $5,641 |
| Rent | $8,100 | $8,100 |
| DSCR | About 1.36x | About 1.44x |
| Down payment | $225,000 | $270,000 |
Pennsylvania charges a 1% state realty transfer tax, and most municipalities and school districts add a local share. In Philadelphia, the combined rate is a little over 4%. Who pays is set by the contract, and splitting it is common. Confirm the exact amounts with your title company.
Philadelphia requires a rental license, and rentals in older housing face lead-safe certification rules. Pittsburgh and other cities have their own rental registration or inspection programs. Make sure the unit count on the license and the zoning permit matches the building, because only legal units count toward rent.
Use the same questions with everyone you talk to:
Max LTV on 5-8 units varies by program; the top of our range is 80% on a purchase and 75% on cash-out. Our standard DSCR minimum is 1.0x, with sub-1.0 programs available. Cash-out seasoning varies by program (/dscr-cash-out-refinance-seasoning.html). LLC borrowers are standard.
The timeline depends on the appraisal, title work and how complete the file is. There is no stated maximum loan amount; larger balances get more review. Get a quote with the form below.
If you own several small Pennsylvania rentals, ask about combining them. Five or more investment properties of 1-8 units each can go under one blanket portfolio loan with one closing and one payment, qualified on the portfolio's cash flow (/blanket-portfolio-loans-pennsylvania.html). Call (877) 298-1001 to talk it through.
Send these with your request:
LendingStreet is our top pick. We finance 5-8 unit buildings as residential DSCR loans on rent, with no tax returns, LLC borrowing standard, 30-year terms and sub-1.0 options.
Yes. We lend throughout Pennsylvania, including Philadelphia, Pittsburgh, the Lehigh Valley and smaller cities, and in all 50 states and DC.
Yes, if the units are legal and licensed. We count only units shown on the license and permits.
The combined state and city rate is a little over 4% of the price, usually split by contract between buyer and seller. Your title company will confirm the figure.
Mixed-use buildings can be reviewed case by case. Send us the rents and square footage for each part of the building.
Yes. Once the units are leased, a DSCR refinance can replace the short-term loan if the rent covers the new payment.
They affect whether the units can be legally rented. Philadelphia has lead-safe certification rules for older rentals, so confirm the building is compliant before closing, since only legal, rentable units count toward the rent.
No. These are business-purpose loans on non-owner-occupied investment property.
2-3 competing quotes from 30+ capital sources. No credit pull. No commitment.
By clicking, you provide express written consent to be contacted by LendingStreet (NMLS #1734316) via SMS, phone, or email, possibly using automated technology, regarding your loan inquiry. Reply STOP to opt out. Consent is not required to obtain services. See our Privacy Policy and Terms.