In Omaha and Lincoln, the brick sixplex and eightplex is a familiar building type, built in waves from the 1910s through the 1970s. Many of them carry solid rents against prices that still work on a DSCR loan.
In short: LendingStreet makes DSCR loans on 5, 6, 7 and 8 unit residential rentals in Nebraska, sized on the building's rent rather than your income. Expect a 620 minimum credit score, a 1.0x standard minimum ratio and leverage that varies by program, often a little below what a fourplex gets. Nebraska property taxes are relatively high, and hail-driven insurance costs are rising, so those two lines decide most files.
In Omaha, older brick walk-ups line streets in Midtown, Dundee, the Blackstone area, Benson and near Creighton and the University of Nebraska at Omaha. Many are three-story buildings with six or eight units and a shared basement. Newer small complexes sit farther west and in Bellevue and Papillion.
Lincoln has a similar mix near the University of Nebraska campus, the Near South and Haymarket edges, plus 1970s buildings on the north and east sides. Smaller cities such as Kearney, Grand Island and Norfolk have fewer 5 to 8 unit buildings, but they come up and often have long-term tenants.
| Area | Typical buildings | What to check |
|---|---|---|
| Omaha: Midtown, Dundee, Benson | Early 1900s brick walk-ups | Boiler heat, electrical updates, parking |
| Lincoln: near campus, Near South | Walk-ups and student-oriented buildings | Lease cycles and turnover |
| West Omaha, Bellevue, Papillion | 1970s to 1990s small complexes | Roofs, siding and hail history |
Underwriting adds up the rent from every unit, using signed leases and the appraiser's market rent opinion, and divides it by the full monthly payment: principal, interest, taxes, insurance and HOA dues if any. Standard programs look for 1.0x or better.
Taxes and insurance carry more weight on a 5 to 8 unit building than on a single-family rental, because the bills are bigger and they sit inside the payment. A tax bill that is $300 a month higher than you planned, or an insurance quote that jumps at renewal, can move the ratio more than a modest change in rate.
Because 5 to 8 units is treated as residential on our programs, you qualify on rent with no W-2s or tax returns. What changes from a fourplex is leverage: purchase loans go up to 80% LTV on some programs, but 5 to 8 unit buildings often get less. Plan your down payment with that in mind.
| Term | What to expect |
|---|---|
| Property type | 5 to 8 unit residential rental |
| Loan amount | From $150,000, no stated maximum |
| Purchase LTV | Up to 80% on some programs; often lower on 5-8 units |
| Cash-out LTV | Up to 75%; varies by program |
| Minimum DSCR | 1.0x standard; sub-1.0 programs exist |
| Credit score | 620 minimum |
| Income documents | None; qualifies on rent |
| Borrower | LLC standard; sign for the loan personally |
Eastern Nebraska sees frequent hail and severe spring storms, and insurers price roofs carefully. A building with an older roof or prior hail claims can draw a higher premium or a larger wind and hail deductible. Ask for the roof age and claim history before you make an offer.
Older brick buildings often have steam or hot-water boilers and may still have galvanized plumbing or older wiring. Those items show up in the appraisal and insurance inspection, so have them inspected and priced.
Property taxes in Nebraska are relatively high compared with many states, and on a small apartment building they are often the largest cost after principal and interest. Use the county assessor's current valuation and levy, and expect the value to be reviewed after a sale.
Nebraska charges a documentary stamp tax when a deed is recorded, customarily paid by the seller. The buyer's costs are mostly title insurance, recording, the appraisal and lender costs. Confirm the split with your title company.
This example is illustrative and not a quote. An investor buys an Omaha Midtown eight-unit building for $920,000. Each unit rents for about $1,025 a month, so gross rent is $8,200. Property taxes are budgeted at $1,250 a month and insurance at $425. The owner also pays about $450 a month in utilities and common-area costs, which affect cash flow but are not part of the DSCR payment.
At 75% LTV the loan is $690,000. On 30-year amortization, principal and interest is about $4,825, so the payment with taxes and insurance is about $6,500 and the DSCR is about 1.26x.
That clears the 1.0x standard minimum. After the owner-paid costs, about $1,250 a month is left before vacancy, repairs and management, which is why a realistic expense budget matters as much as the ratio.
| Item | 75% LTV |
|---|---|
| Purchase price | $920,000 |
| Gross monthly rent | $8,200 |
| Loan amount | $690,000 |
| Principal and interest | $4,825 |
| Property taxes | $1,250 |
| Insurance | $425 |
| Monthly payment (PITI) | $6,500 |
| DSCR | About 1.26x |
Nebraska's Uniform Residential Landlord and Tenant Act covers deposits, notices and entry. Omaha adopted a rental registration and inspection ordinance in recent years, so check the current requirements with the city before closing.
In Lincoln, many buildings near campus rent on leases that start in August. A rent roll with lease dates helps show the income is stable through the year.
Omaha and Lincoln have stable employment in health care, insurance, finance, education and government. Small buildings in walkable neighborhoods often keep tenants for years, which supports the 12-month lease income a DSCR loan is sized on. Ask the seller for actual collected rents, not just scheduled rents.
Gather these before you reach out and the appraisal and underwriting move faster.
Our investor loans are business-purpose loans on non-owner-occupied property. Share the property address, rent roll, purchase price or current loan, and your target loan amount. We will size the ratio with real tax and insurance figures and show you what each loan amount does to it. Get a quote with the form below or call (877) 298-1001.
If the building has nine or more units, it falls under commercial financing instead; see our multifamily loans page.
By custom the seller pays the documentary stamp tax when the deed is recorded, but terms can be negotiated. Confirm the final split with your title company.
Omaha has a rental registration and inspection ordinance. Requirements have changed in recent years, so confirm the current rules with the city.
Not usually. Buildings near campus can qualify on their lease income. Expect underwriting to look at turnover, lease dates and whether rents are per unit or per bedroom.
The standard minimum is 1.0x, meaning rent covers principal, interest, taxes and insurance. Sub-1.0 programs exist for buildings that fall a little short.
Yes. LLC borrowers are standard. You will sign for the loan personally, and you will need the LLC's formation documents and operating agreement.
Yes. Cash-out goes up to 75% LTV, often lower on 5 to 8 units, and the rent has to cover the new payment at the program minimum. Seasoning rules vary by program.
Our DSCR programs have no stated maximum. Loans start at $150,000, and larger balances are reviewed case by case, often with lower maximum LTV.
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