In Savannah, many 5-8 unit buildings are old houses in the Victorian District and Thomas Square that were split into apartments generations ago. They rent well to SCAD students, hospital staff and port workers, but historic rules, flood maps and STR limits shape every deal.
In short: LendingStreet finances 5-8 unit buildings in Savannah and Chatham County with DSCR loans that qualify on the combined rent, with no W-2s or tax returns and LLC borrowers allowed. Loans start at $150,000 with no stated maximum, and leverage on 5-8 units varies by program. Plan for historic review on exterior work, flood insurance in low areas and long-term leases rather than nightly rentals.
The Victorian District, Thomas Square and Starland have large wood-frame houses split into five to eight units, many within walking distance of SCAD buildings and Forsyth Park. Midtown and Ardsley Park have brick buildings and duplexes, and the Eastside has lower-priced older stock.
Outside the city, Pooler, Garden City and Richmond Hill have newer small buildings near the port, the airport and Hunter Army Airfield.
Many converted houses here have a mix of unit sizes: a large first-floor apartment, smaller units upstairs and sometimes a carriage house unit in the lane behind. Each unit needs to be legal and separately rentable for its rent to count toward the ratio.
| Area | Typical building | Main tenant |
|---|---|---|
| Victorian District and Thomas Square | Converted wood-frame houses | Students and young professionals |
| Starland and Midtown | Mixed small buildings | Hospital and creative workers |
| Eastside | Older lower-priced buildings | Working households |
| Pooler and Garden City | Newer small buildings | Port, airport and military workers |
Savannah has several historic districts, and exterior changes in them need review. The Victorian District and the downtown Landmark District are the most familiar, but other areas have their own rules.
Wood siding, windows and porches are the most common review items. Budget for approved materials and longer timelines if your plan includes exterior work.
Five to eight units is the top of the residential range; nine or more units moves into commercial lending. Inside that range the loan is approved on what the building rents for. No W-2s, no tax returns, a 620 minimum score, LLC ownership allowed, $150,000 minimum loan size with no stated maximum, and 30-year terms available.
The test is simple: total rent from all units divided by principal, interest, taxes and insurance. Most programs look for 1.0x or better, and sub-1.0 programs can work when the numbers are close. Purchase leverage can reach 80% LTV and cash-out 75% on smaller rentals, but on 5-8 unit buildings the maximum is often lower and varies by program.
The rent roll does a lot of the work. The appraiser checks every unit's rent against comparable rentals, and income that looks out of line with the area gets a closer look. Vacant or down units need a realistic rent and a plan for getting them leased.
Chatham County reassesses annually, and investors do not get homestead exemptions. Use a tax estimate based on your purchase price, not the seller's bill. Georgia assesses property at 40% of fair market value before the millage rate is applied.
Georgia charges a transfer tax of $1 per $1,000 and an intangible recording tax on long-term notes of $1.50 per $500 of the loan amount. Both should be in your closing budget.
Georgia also allows owners to appeal an assessment notice within a set window after it is mailed. If the county value jumps above what the building is worth, filing an appeal on time can help the ratio in future years.
This example is illustrative and not a quote. An investor buys a six-unit converted house in the Victorian District for $1,150,000. The units rent for $1,450 each on 12-month leases, for a combined $8,700 a month. Taxes are budgeted at $1,200 a month and insurance at $800.
A 75% LTV loan of $862,000 carries estimated principal and interest of about $6,027. Add taxes and insurance and the payment is about $8,027, a DSCR of about 1.08x. At 70% LTV, the $805,000 loan has a payment of about $7,629 and a DSCR near 1.14x. Insurance on an old wood-frame building is a big line, but the rent still covers the payment at both leverage levels.
| Item | 75% LTV | 70% LTV |
|---|---|---|
| Purchase price | $1,150,000 | $1,150,000 |
| Combined monthly rent | $8,700 | $8,700 |
| Loan amount | $862,000 | $805,000 |
| Estimated principal and interest | $6,027 | $5,629 |
| Taxes and insurance | $2,000 | $2,000 |
| Total monthly payment | $8,027 | $7,629 |
| DSCR | About 1.08x | About 1.14x |
Much of Savannah is low-lying, and areas near marshes and rivers are in mapped flood zones. Flood insurance there is generally required. Wind coverage also matters because of hurricane exposure.
Older wood-frame buildings may cost more to insure than brick. Get wind, flood and liability quotes before you commit.
Termites and moisture are year-round issues in coastal Georgia. A wood-destroying organism report and a look under the house are worth the cost before closing.
Savannah limits short-term vacation rentals, including caps in parts of the downtown historic district and restrictions in many residential areas. Do not plan on nightly income unless the units already have valid certificates and the rules allow them.
Most 5-8 unit buildings here are financed on 12-month leases. SCAD, Memorial Health, St. Joseph's/Candler, the port and Gulfstream all support year-round demand.
A clean package gets a faster answer on a small apartment building.
LendingStreet makes business-purpose DSCR loans on non-owner-occupied rentals. Our investor loans are business-purpose loans on non-owner-occupied property, and we review 5-8 unit buildings across the Savannah area.
Share the rent roll, the address and your target leverage in the form below or by phone at (877) 298-1001. We will size the loan at more than one LTV so you can see the tradeoff. Our Georgia 5-8 unit DSCR page covers the statewide picture.
Only if the units have valid certificates and the rules allow them. Most buildings are financed on long-term leases.
A transfer tax of $1 per $1,000 and an intangible recording tax on long-term notes.
If the building is in a mapped flood zone, yes. Much of Savannah is low-lying, so check early.
It affects exterior renovations, not the loan approval itself.
Yes. We finance 5-8 unit buildings across the Savannah area.
Eight units. Up to eight units fits our residential DSCR programs; nine or more is commercial multifamily.
No. The loan qualifies on the building's rent. There are no W-2s or tax returns, and the minimum credit score is 620.
Sometimes. Sub-1.0 DSCR programs are available, and putting more down is the other common fix.
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