California DSCR loans for 5-10 unit apartment buildings
TL;DR: You can finance a 5- to 10-unit California apartment building with a small-balance DSCR or investor multifamily loan, sized on the building’s rents rather than your personal income. Because five units is past the 1-4 unit residential line, lenders review a rent roll, leases and operating history, read against the statewide rent cap and any local rent control. We are a broker and compare wholesale programs that fit.
- Broker, not lender
- NMLS #2827624
- CA CFL Licensed · 60DBO-218873
- AZ CMB Licensed · #CMB-2016143
- Non-owner-occupied only
This site is only about California apartment buildings of five to ten units. For all California DSCR options, see dscrloancalifornia.com, which covers single-family and 2-4 unit rentals.
The building is read unit by unit
Rent, lease dates, deposits, vacancies and concessions for every unit, checked against the leases and bank deposits. Build a lender-ready rent roll.
Expenses matter as much as rent
A trailing operating statement, your post-sale Prop 13 tax bill, an insurance quote and owner-paid utilities. Prop 13 and expenses.
Fewer lenders go past four units
Each sets its own unit-count, location, condition and loan-size rules. Why five units is a different loan.
Four steps from rent roll to funded loan
Send the basics
Address, unit count and mix, current rent roll, purchase price or value, and the loan you want.
We review the rent roll
We check it for rent-cap and local rent-control issues, retrofit status and anything a lender will question.
We compare wholesale programs
Only programs that accept your unit count, city and condition, with the trade-offs explained.
You choose; the lender underwrites and funds
We keep the appraisal, insurance and title moving until closing.
California DSCR loans for 5-10 unit apartment buildings
Read more →Purchase loansBuying a 5-10 unit apartment building in California
Read more →Cash-out refinanceCash-out refinance on a California 5-10 unit building
Read more →Rate/term refinanceRate/term refinance on a California 5-10 unit building
Read more →Mixed-useMixed-use buildings with 5-10 apartments in California
Read more →Small-balance DSCR vs a bank commercial multifamily loan
| Question | Small-balance DSCR / investor multifamily | Bank or commercial multifamily loan |
|---|---|---|
| Main qualifier | Building rents against the full payment, plus credit and reserves | NOI and coverage, plus sponsor financials and often a deposit relationship |
| Personal income documents | Usually not used to qualify | Personal and business tax returns commonly requested |
| Structure | Varies by program; many offer longer fixed-period options | Often shorter terms with a balloon; covenants may apply |
Full DSCR vs commercial loan comparison · DSCR vs hard money bridge · Fourplex vs 5-unit financing
5-10 unit buildings in eight California metros
Quick answer
Every California market applies the same state rules: the Tenant Protection Act rent cap, Costa-Hawkins and Proposition 13. Local rent programs, retrofit ordinances and insurance conditions differ by city, so the metro notes cover each one separately.
- 5-10 unit apartment loans in Los Angeles
- 5-10 unit apartment loans in Long Beach
- 5-10 unit apartment loans in San Diego
- 5-10 unit apartment loans in San Francisco
- 5-10 unit apartment loans in Oakland and the East Bay
- 5-10 unit apartment loans in San Jose
- 5-10 unit apartment loans in Sacramento
- 5-10 unit apartment loans in the Inland Empire
- California 5-10 unit overview
What 5-10 unit investors ask first
Can I use a DSCR loan on a 5-unit building in California?
Often, yes. Some wholesale programs extend DSCR-style underwriting to five-plus residential units, and others treat these buildings as small-balance commercial loans. Either way, lenders want a current rent roll, leases, an operating statement and an appraisal with a multifamily income approach. Every unit has to be rented to tenants. None can be owner-occupied.
What DSCR do I need for a 5-10 unit apartment building?
There is no single number. Each wholesale lender sets its own minimum coverage, and it can change with unit count, location, condition and loan size. Some lenders also test net operating income. Run the building in our calculator and send the rent roll so we can compare it with programs that fit.
Can I live in one unit of my 6-unit building and still use this loan?
No. These programs are for business-purpose, non-owner-occupied property only, and every unit has to be rented to tenants. If you or a family member will live in the building, you need a different financing path, and we do not arrange owner-occupied loans.
Does California’s rent cap affect how lenders underwrite my building?
It can. The Tenant Protection Act (Civil Code § 1947.12) limits annual rent increases on most covered housing more than 15 years old, and local rent control can be stricter. Lenders and appraisers usually size today’s in-place rents, not your planned increases.
Long-form guides for small apartment owners
Send us the building, not just the borrower
Address, unit count, a current rent roll and the loan you have in mind. We read it the way a 5-10 unit underwriter will and tell you which wholesale programs are worth the appraisal.