When your investor is ready to step up from single-family rentals into true multi-family or mixed-use commercial, BFF's 5–8 unit program closes that gap. No personal income. No tax returns. Qualify on the building's cash flow.
Program at a Glance
This program fills the financing gap between the residential DSCR 1–4 unit program and true commercial real estate lending. It's designed for experienced investors acquiring or refinancing 5–8 unit apartment buildings, or 2–8 unit mixed-use properties that include commercial tenants on the ground floor. Like all DSCR products, qualification is based entirely on the property's rental income — not the borrower's personal income, tax returns, or employment.
This program covers two distinct property structures. A borrower uses whichever track matches their property. Both qualify on the same DSCR calculation method.
🏛 Residential Multi-Family Pure residential rental buildings Unit Count5 to 8 residential units Tenant Mix100% residential Income DocSigned leases or market rent analysis Examples6-unit apartment building, 8-plex Min Loan$400,000 🏭 Mixed Use Commercial Residential + commercial tenants Unit Count2 to 8 total units (residential + commercial) CommercialUp to 49% of gross leasable area Income DocResidential leases + commercial leases ExamplesRetail on ground floor, apartments above Min Loan$400,000 Mixed-Use Commercial Space Limit ≥ 51% Residential ≤ 49% Commercial Commercial space types allowed: retail, restaurant, office, light industrial - must be occupied and income-producing. All commercial tenants require signed leases to be included in DSCR income.
Key parameters from the BFF DSCR (5-8 Multifamily) Matrix. Download the PDF for complete guidelines before pricing any DSCR (5-8 Multifamily) scenario.
| Parameter | Requirement |
|---|---|
| Max Loan | $2,000,000 |
| Max Cash-In-Hand (C/O) | $1,000,000 |
| Max LTV - Purchase | 75% |
| Max LTV - R&T Refi | 70% |
| Max LTV - Cash-Out | 65% |
| Min FICO | 700 (highest FICO among all borrowers used) |
| Min DSCR | 1.00 - no no-ratio option on this program |
| Min Loan Amount | $400,000 |
| Residential Units | 5 to 8 units (pure residential track) |
| Mixed-Use Units | 2 to 8 total units (residential + commercial) |
| Commercial Space | Up to 49% of gross leasable building area · Must be occupied and income-producing |
| Commercial Types | Retail, restaurant, office, light industrial - all must have signed commercial leases |
| Occupancy | Investment only - borrower may not occupy any unit |
| Investor Requirement | Experienced investors only - FTHB and first-time real estate investors not eligible |
| Reserves | 6 months PITIA (standard) · 9 months required for loans above $1,500,000 |
| Income Documentation | Signed leases for all units · Commercial leases for commercial tenants · Market rent analysis acceptable for vacant units |
| Products | 30-yr fixed · 5/6 SOFR ARM · 7/6 SOFR ARM |
| Ineligible States | Illinois · Maryland (Baltimore row homes) · New Jersey (Bergen & Essex Counties) · Pennsylvania (Philadelphia & row homes) · New York |
| Note | All commercial tenants must have executed leases at time of closing. Vacant commercial space cannot be included in the DSCR calculation. Verify borrower's prior investment property experience prior to submission. |
Know which program to pull before you price. The two programs share the same no-personal-income structure but differ significantly on eligibility, LTV, and requirements.
| DSCR 1-4 Unit | DSCR 5-8 / Mixed Use | |
|---|---|---|
| Max Loan | $3,500,000 | $2,000,000 |
| Max LTV (Purchase) | Up to 85% (740+ FICO, conditions) | 75% (hard cap) |
| Min FICO | 640 | 700 |
| Min DSCR | No minimum (no-ratio option) | 1.00 minimum - no no-ratio |
| First-Time Investors | Eligible (with restrictions) | ✖ Not eligible |
| Unit Count | 1 to 4 residential units | 5-8 residential OR 2-8 mixed use |
| Commercial Space | Not applicable | Up to 49% of building |
| STR / Airbnb | Eligible | ✖ Not eligible |
| Min Loan | Per state minimums | $400,000 |
| Reserves | 6 months | 6 months (9 months if >$1.5M) |
Investors upgrading from 1–4 unit properties to 5, 6, 7, or 8-unit apartment buildings. The step-up from residential to multi-family DSCR financing.
Properties with retail, restaurant, or office on the ground floor and apartments above. All income streams combined in the DSCR calculation.
Investors pulling equity from an existing 5–8 unit building to fund the next acquisition. Up to $1M cash-in-hand at 65% LTV.
Single-family investors adding their first multi-family asset. A clean, non-QM path that doesn't require a commercial bank, a personal income underwrite, or a recourse commercial loan.
Investors buying underperforming multi-family properties at below-market rents with a plan to renovate and re-lease. Income qualified on current leases at time of closing.
Investors who financed a 5–8 unit property on a commercial or hard money loan and want to move it to a longer-term fixed-rate residential DSCR structure.
The minimum DSCR is 1.00 — the property must at minimum break even with rental income covering the full PITIA payment. Unlike the 1–4 unit DSCR program, there is no no-ratio option on this program.
Commercial space — including retail, restaurant, office, and light industrial — may make up up to 49% of the building's gross leasable area. The residential units must constitute at least 51% of the building. All commercial tenants must have executed leases at closing.
An experienced investor is a borrower who currently owns or has previously owned investment real estate. This is documented through the borrower's credit report, real estate schedule on tax returns, or property records. First-time homebuyers and first-time real estate investors are not eligible.
All income is combined — residential rents plus commercial rents — and used together in the DSCR calculation. Residential income is documented via signed leases or a 1007 market rent analysis. Commercial income is documented via executed commercial leases.
Yes. The 5–8 unit and mixed-use DSCR program is currently not available in: Illinois; Maryland (Baltimore row homes); New Jersey (Bergen County and Essex County); Pennsylvania (Philadelphia and row home properties); and New York.
BFF DSCR (5-8 Multifamily) Matrix — Rev. Feb 2026
This program has a hard 1.00 DSCR floor — no no-ratio option. If the property doesn't break even, it won't clear underwriting. Confirm the DSCR calculation before pricing.
Non-QM decisions typically within 48 hours of complete file. Check current turn times before locking.
Price it in the Quick Pricer, download the matrix, or call your AE. We Deliver.
