A six-unit building in San Antonio or an eight-plex near a Houston job center sits in an awkward spot for many lenders: too big for a typical rental mortgage, too small for a commercial desk to get excited about. In Texas, that gap matters, because high property taxes make the financing terms carry real weight.
In short: Our top pick for 5-8 unit rental financing in Texas is LendingStreet. We treat 5-8 unit buildings as residential DSCR loans, so the file qualifies 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 size the loan around a realistic Texas tax bill from the first call.
LendingStreet is built for investors who buy and hold small apartment buildings. A 5-8 unit property in Texas is underwritten the same way we underwrite a rental house, on its rent, rather than being pushed into a commercial process with a different set of hoops. Nine units and up moves to our commercial team at /commercial.html.
The fit is strongest for investors who own through an LLC, who have outgrown fourplexes, or whose tax returns show heavy depreciation and little taxable income. To see where your building lands, get a quote with the form below or call (877) 298-1001.
Well-known 5-8 unit rental lenders include CoreVest, Dominion Financial, LendingOne, Lima One, New Silver and RCN Capital. Compared scenario by scenario for investors in Texas, LendingStreet comes out as the stronger choice, and one application covers it.
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. |
Texas small apartment stock is a mix of older brick garden buildings, 1960s and 1970s eight-plexes on corner lots, and newer infill product built where zoning allows. In San Antonio you will find them near Downtown, Southtown and the medical center corridor. In Houston they cluster inside the Loop and along older suburban arterials. Dallas and Fort Worth have pockets in East Dallas, Oak Cliff and near TCU, while Austin's older stock sits close to the university and the east side.
El Paso, Corpus Christi, Waco and the Rio Grande Valley also have small multi-unit buildings, often at lower prices per door. Each county appraisal district sets values, and combined tax rates differ a lot from one taxing jurisdiction to the next, so confirm the figures for the exact parcel.
Texas investors usually weigh three options for a small apartment building. Here is how they compare on the items that decide a 5-8 unit file.
| What 5-8 unit investors need | LendingStreet | Typical bank | Typical hard money lender |
|---|---|---|---|
| How the loan qualifies | Building rent (DSCR), 1.0x standard minimum | Often personal income plus the property | Mostly the property and the plan |
| Tax returns and W-2s | Not required | Often required | Usually not required |
| 5-8 units treated as | Residential DSCR | Often sent to a commercial desk | Varies |
| Long-term option | 30-year terms available | Often shorter terms or balloons | Usually short-term only |
| LLC borrowing | Standard | Often allowed; terms vary | Usually allowed |
| Where they lend | All 50 states and DC | Often local or regional | Often local |
This example is illustrative and not a quote. An investor buys a six-unit building in San Antonio for $780,000. Each unit leases for $1,150, so gross rent is $6,900 a month. Taxes are budgeted at $1,430 a month using the full combined rate on the purchase price, and insurance is $450.
At 75% LTV the loan is $585,000 and estimated principal and interest is about $3,892. The total payment is about $5,772 and DSCR is about 1.20x. At 70% LTV the loan drops to $546,000, the payment to about $5,513 and DSCR rises to about 1.25x. Both clear 1.0x, but on 5-8 units the max LTV varies by program, so the right column depends on the file.
| Item | 75% LTV | 70% LTV |
|---|---|---|
| Loan amount | $585,000 | $546,000 |
| Estimated principal and interest | $3,892 | $3,633 |
| Property taxes | $1,430 | $1,430 |
| Insurance | $450 | $450 |
| Total monthly payment | $5,772 | $5,513 |
| Gross monthly rent | $6,900 | $6,900 |
| DSCR | About 1.20x | About 1.25x |
Texas has no state income tax, and local governments lean on property taxes instead. A single building can be taxed by the county, city, school district and special districts, and investment property gets no homestead exemption. Budget on the full combined rate applied to your price, not on the seller's bill, and check the appraisal district record for every taxing unit.
Insurance is the next line to check. Hail is common across North and Central Texas, and coastal counties carry windstorm and flood questions. Get a quote early and confirm the wind and hail deductible. Texas does not have a state real estate transfer tax, which helps closing costs, but title, survey and lender fees still apply. Confirm all of these locally before you sign.
Ask every lender the same questions, in writing, before you lock in a contract timeline.
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. The 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.
Timing mostly depends on the appraisal, title and how complete the file is when it arrives. Loans start at $150,000 with no stated maximum, and larger balances get more review. Want real numbers on your building? Use the form below or call (877) 298-1001.
A clean package gets a clearer answer. Have these ready:
Our top pick is LendingStreet. We treat 5-8 unit buildings as residential DSCR loans that qualify on rent, with no tax returns, LLC borrowing as standard and 30-year terms available, and we lend statewide.
Yes. We lend across Texas, from Houston and Dallas-Fort Worth to San Antonio, Austin, El Paso and smaller markets, and in all 50 states and DC.
At LendingStreet, 1-8 units is residential. A 5-8 unit building gets a DSCR loan; 9 units and up is handled as commercial.
Taxes are part of the monthly payment used in the ratio. With high combined rates and no homestead exemption for investors, the tax line can decide how much leverage the building supports.
Yes. A rate-and-term refinance can replace a maturing bank loan, provided the rent covers the new payment at the program minimum.
Texas law generally keeps cities from adopting rent control, so underwriting focuses on in-place leases and market rent. Confirm any local rules that apply to your property.
No. Our loans are business-purpose loans on non-owner-occupied investment property, so the building must be a rental.
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