New Hampshire's old mill cities are full of small multifamily buildings: wood-frame tenements, brick blocks and converted houses with five to eight units. Rental demand is tight, and the 5 to 8 unit building is a common way to scale.
In short: Yes. LendingStreet finances 5 to 8 unit rental buildings in New Hampshire with DSCR loans that qualify on the building's rent, with no W-2s or tax returns and LLC borrowers standard. Loans start at $150,000 with no stated maximum, the standard minimum DSCR is 1.0x and the minimum credit score is 620, while maximum LTV on 5 to 8 units can be lower than on 1 to 4 units and varies by program. New Hampshire has no broad income or sales tax, so local property taxes are high, and that tax line usually decides how far the rent stretches.
Manchester has the largest supply, especially on the West Side, in the inner-city neighborhoods around Elm Street and near the old Amoskeag mill district. Nashua has similar buildings in the Tree Streets and near downtown. Concord, Dover, Rochester, Laconia and Keene have smaller numbers of older buildings.
On the Seacoast, Portsmouth and the surrounding towns have higher prices and fewer buildings for sale. Ratios are often tighter there, while the mill cities usually show stronger rent relative to price.
| Area | Typical buildings | What to check |
|---|---|---|
| Manchester, Nashua | Wood-frame and brick multifamily, 1890s to 1930s | Heating system, lead paint, fire code |
| Concord, Dover, Rochester | Converted houses and small blocks | Parking, oil tanks, electrical |
| Portsmouth and Seacoast | Higher-priced small buildings | Tight ratio; leverage may be lower |
The ratio is simple: total monthly rent from all units divided by the monthly payment, which includes principal, interest, property taxes, insurance and any HOA dues. On standard programs it has to reach 1.0x, and a higher ratio can improve terms. Sub-1.0 programs exist for buildings that fall a little short.
Appraisers on 5 to 8 unit buildings usually look at both comparable sales and the income the building produces, and they give an opinion of market rent for each unit. If the in-place rents are well below market, underwriting generally works from the leases you actually have, so a building with old below-market leases may size smaller than its potential suggests.
For our programs, 5 to 8 units is still residential, so the loan is underwritten like a larger version of a fourplex loan rather than a commercial apartment loan. The difference is that maximum LTV can be lower on 5 to 8 unit properties and on larger balances, and reserve requirements can be higher. Both vary by program.
| 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 |
Many older buildings still have oil or gas boilers with owner-paid heat. In a New Hampshire winter that is a large expense, and an older boiler or an underground oil tank can raise insurance questions. Have the heating system inspected and ask for fuel bills.
Buildings built before 1978 are subject to federal lead paint disclosure rules, and New Hampshire has its own lead rules for rentals where young children live. Factor any lead work into your plans.
New Hampshire funds much of local government and schools through property taxes, and rates vary widely by town. On a 5 to 8 unit building the tax bill is often the largest expense after principal and interest. Use the town's current rate and the assessed value, and remember that towns revalue on their own cycles.
New Hampshire charges a real estate transfer tax that is split between buyer and seller by statute. Ask your title company for your share early, since it is a real number on a building of this size.
This example is illustrative and not a quote. An investor buys a Manchester West Side six-unit building for $1,050,000. Each unit rents for about $1,650 a month, so gross rent is $9,900. Property taxes are budgeted at $1,650 a month and insurance at $400. The owner also pays about $300 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 $787,500. On 30-year amortization, principal and interest is about $5,506, so the payment with taxes and insurance is about $7,556 and the DSCR is about 1.31x.
That clears the 1.0x standard minimum. After the owner-paid costs, about $2,044 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 | $1,050,000 |
| Gross monthly rent | $9,900 |
| Loan amount | $787,500 |
| Principal and interest | $5,506 |
| Property taxes | $1,650 |
| Insurance | $400 |
| Monthly payment (PITI) | $7,556 |
| DSCR | About 1.31x |
New Hampshire generally requires a lawful reason to evict a residential tenant, with limited exceptions, and sets notice rules for rent increases and lease endings. Confirm the current rules with a local attorney before you plan changes to the rent roll.
Local code enforcement in Manchester and Nashua inspects multifamily buildings for fire and life safety. Check for open violations before closing.
Southern New Hampshire draws renters from the Boston area who want lower housing costs, and new construction has not kept up. That keeps vacancy low in Manchester and Nashua. Rents still have to support the full payment, so use actual leases and a realistic market estimate for any vacant unit.
A complete package gets a faster, clearer answer on a 5 to 8 unit building.
Our investor loans are business-purpose loans on non-owner-occupied property. Send the address, price, rent roll and the loan amount you want. The team will run the ratio on realistic taxes and insurance, check it at a few loan amounts and come back with options, including sub-1.0 DSCR programs where they fit. Use the form below or call (877) 298-1001.
Buildings with nine or more units are commercial; for those, see our multifamily page.
By statute the transfer tax is split between buyer and seller. Ask your title company for your share on the purchase price.
With no broad income or sales tax, towns rely heavily on property taxes, and rates vary widely. On a small apartment building the tax bill can rival the insurance and utilities combined.
Pre-1978 buildings need federal lead disclosure, and New Hampshire has its own lead rules for rentals with young children. Ask an inspector about lead before you buy.
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.
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.
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