West Virginia's small cities have older apartment buildings and converted houses at some of the lowest prices per unit in the East. Morgantown's student market and the Eastern Panhandle's commuter market are the busiest.
In short: LendingStreet makes DSCR loans on 5, 6, 7 and 8 unit residential rentals in West Virginia, 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. In West Virginia, low prices help the ratio, while flood exposure in river valleys and building condition are the items to check.
Morgantown has many small buildings near West Virginia University, in Sunnyside, South Park, Wiles Hill and Evansdale, many of them older houses split into apartments or small walk-ups built for students. Huntington has similar stock near Marshall University. Charleston has older buildings on the East End and near downtown and the Capitol.
In the Eastern Panhandle, Martinsburg and Charles Town draw renters who commute toward the Washington, D.C. and northern Virginia job markets, and newer small complexes there trade at higher prices. Wheeling, Parkersburg, Fairmont and Clarksburg have older buildings at some of the lowest prices per unit in the region.
| Area | Typical buildings | What to check |
|---|---|---|
| Morgantown | Student-oriented buildings | Per-bedroom leases, turnover |
| Charleston, Huntington | Older buildings and conversions | Flood risk, condition |
| Martinsburg, Charles Town | Small complexes | Commuter demand |
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 |
West Virginia charges an excise tax on deed transfers, with a state share and a county share. Who pays is set by the contract and local custom, so ask your title company for the figure and the split. Buyers also pay title, recording, appraisal and lender costs.
Property taxes in West Virginia are relatively low. Rental property is taxed in a higher class than owner-occupied homes, so a rental can carry a bigger bill than a similar house used as a home. Use the county assessor's figures and the current levy.
Many West Virginia towns sit in narrow river valleys, and flooding is a real risk. Charleston, Huntington, Wheeling and many smaller towns have neighborhoods in mapped flood zones along the Kanawha, Ohio and other rivers. Check the flood map and ask for flood history. If flood coverage is required, the premium counts in the ratio.
Older buildings may have older wiring, aging roofs and hillside drainage issues. Insurers ask about electrical updates and roof age, so inspect early and price repairs before you set your offer.
This example is illustrative and not a quote. An investor buys a Morgantown six-unit building for $560,000. Each unit rents for about $875 a month, so gross rent is $5,250. Property taxes are budgeted at $400 a month and insurance at $300. The owner also pays about $350 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 $420,000. On 30-year amortization, principal and interest is about $2,937, so the payment with taxes and insurance is about $3,637 and the DSCR is about 1.44x.
That clears the 1.0x standard minimum. After the owner-paid costs, about $1,263 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 | $560,000 |
| Gross monthly rent | $5,250 |
| Loan amount | $420,000 |
| Principal and interest | $2,937 |
| Property taxes | $400 |
| Insurance | $300 |
| Monthly payment (PITI) | $3,637 |
| DSCR | About 1.44x |
West Virginia's landlord-tenant law sets basic rules for deposits, notices and repairs, and the state does not have local rent control. Evictions are handled through magistrate court.
Morgantown has a rental housing code and inspection program for rental units. Student buildings near WVU and Marshall rent on academic-year leases, so a rent roll with lease dates and occupancy history helps your file.
Low prices per unit often let small West Virginia buildings clear the ratio at standard leverage, even with modest rents. That is one reason investors from higher-cost states look at Morgantown and the Eastern Panhandle.
The tradeoff is condition and management. Older buildings need capital, and student buildings need active management. Budget for repairs, turnover and vacancy so the real return matches the ratio.
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.
Yes. West Virginia charges an excise tax on deed transfers, with state and county shares. Ask your title company for the amount and the split.
If it is in a mapped flood zone, flood insurance is generally required, and the premium counts in the ratio. Many river towns have flood-zone neighborhoods.
Yes. Student buildings can qualify on lease income. Expect underwriting to look at lease dates, occupancy and whether rents are per unit or per bedroom.
Yes. Rental property is taxed in a higher class than owner-occupied homes, so budget on the rental rate.
Vacant units can often be counted at a market rent the appraiser supports, but some programs want a minimum number of units leased. It varies by program, so tell us about vacancies up front.
On our programs, 1 to 8 units is residential, so 5, 6, 7 and 8 unit buildings qualify for a DSCR loan on rent. Nine or more units moves to commercial financing.
Purchase loans go up to 80% LTV on some programs, but 5 to 8 unit buildings and larger balances often get less. Plan for 20% to 30% down plus reserves, depending on the program and the ratio.
No. The loan qualifies on the building's rent. You need a 620 or higher credit score, reserves and entity documents if you buy in an LLC.
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