The financing gap nobody built for
Five units is the line where a property becomes commercial. Above it, Fannie and Freddie residential programs are off the table, and the agency small-balance programs that do exist come with institutional process: 30-60 day timelines, heavy documentation, and minimums that often exclude sub-$1M deals.
Meanwhile most private lenders cap their residential DSCR programs at 4 units. The investor buying an 8-unit building in Columbus or a 14-unit in Memphis is stuck between two systems, and the deals that work are won by whoever can actually close.
How LendingStreet closes 5–20 unit deals
Our marketplace includes capital sources that underwrite 5-20 unit multifamily on debt-service coverage: the building's NOI carries the loan, not your personal income. Purchase and refinance at up to 75% LTV, cash-out available, LLC and entity borrowers standard.
For value-add acquisitions — buildings with below-market rents or vacancy to fix — bridge capital sources fund the purchase plus rehab in 5-10 days, then the deal refinances into a permanent DSCR structure once stabilized. One application, both phases placed.
No credit pull. No commitment. Investment properties only.
Typical small multifamily structures we place
Stabilized 8-unit purchase: 75% LTV DSCR, 14-21 day close. Value-add 12-unit: bridge at up to 90% of cost including rehab budget, bridge-to-perm exit. Portfolio refinance: multiple small multifamily assets cross-collateralized under one blanket loan with one payment.
Loan range $200K–$20M, all 50 states, 660+ FICO typical, no W2 required.
Frequently Asked Questions
Why is 5-20 unit multifamily so hard to finance?
Properties with 5+ units are commercial by definition, so they fall outside Fannie/Freddie residential programs. But at 5-20 units the loan is usually too small for institutional multifamily desks, whose minimums and timelines are built for 50+ unit assets. The result is a financing gap: too big for residential, too small for institutional.
How does LendingStreet finance small multifamily?
Through DSCR-based and bridge capital sources that underwrite to the property's net operating income rather than agency checklists. Typical structures: purchase or refinance at up to 75% LTV, 5-20 units, $200K-$20M, with bridge-to-perm available for value-add and lease-up plays.
What is the typical timeline?
Stabilized small multifamily DSCR placements typically close in 14-21 days. Bridge structures for value-add acquisitions can close in 5-10 days, then refinance into permanent DSCR financing after stabilization.
Do I need to qualify with personal income?
No. These programs underwrite the property's income (NOI / DSCR), not your tax returns. LLC borrowers are standard, and there is no W2 requirement.
What about mixed-use buildings?
Mixed-use with a residential majority (for example, apartments over retail) can be placed through commercial and mixed-use capital sources in the same marketplace, with custom terms up to $5M+.