Multifamily DSCR Guidelines (5+ Units)

Max cash-out $500,000. Up to $1,000,000 cash-out allowed when LTC ≤ 100% and LTV ≤ 65%; higher requires pre-approval.

Maximum LTC (by months since acquisition)

• < 3 months: max LTC 80%
• 3-6 months: max LTC 100%

LTV = loan ÷ lowest of underwritten as-is value or purchase price (2% seller-concession limit, 20% assignment-fee limit). LTC = loan ÷ (purchase price + paid hard-cost improvements). A refi counts as Rate/Term only when the paid-off debt is a lien recorded on title.

Minimum property value

$500,000 · average $75,000 per unit

Maximum per-property value

$15,000,000

Minimum loan

$350,000

Maximum loan

$5,000,000 · up to $10,000,000 on exception · > $3,000,000 requires the TPO approved for Diya's CRE program

Max average loan per unit

$1,000,000

Max guarantor exposure

$6,000,000 (higher on exception)

Properties per loan

1

Units per property

5-30 (> 10 requires the CRE program; > 30 on exception)

The 8/7/26 rate sheet prices UPB to $3.0M — loans above that need manager pricing confirmation even where guideline-eligible.

NCF-based DSCR: monthly in-place Net Cash Flow ÷ monthly P&I, after all operating revenue, expenses, and cap-ex reserves.

Minimum NCF DSCR by market tier

• Top / Standard market: 1.20x
• Small market: 1.30x
• Very Small market: 1.40x

Gross rental income

The lower of actual monthly rent (lease / rent roll) or market rent per the appraisal. Short-term-rental (Airbnb) income is not allowed. A leased unit = 12-month initial term between unrelated parties (or month-to-month following a prior active 12-month lease).

NOI back test (not for pricing)

• NOI ÷ hypothetical 30-yr amortizing payment ≥ 1.00x
• NOI ÷ hypothetical 25-yr amortizing payment ≥ 0.95x below 75% LTV, ≥ 1.15x at 75%+

Eligible

• 5-30 units attached (larger on exception)
• Minimum 400 sqft per unit (< 400 sqft on pre-approval)
• Tenant-based Section 8, subject to guarantor experience
• Legal nonconforming use, subject to exception review; insurance must meet or exceed the loan amount

Ineligible

Loan purpose

Business purpose only: Purchase · Rate/Term Refi (max $2,000 cash back) · Cash-Out Refi · Delayed Purchase (owned free-and-clear within 180 days of acquisition; purchase terms apply).

Minimum occupancy: 80% for 5-9 units, 90% for 10+ units. In practice: 5-19 units require all but one unit occupied; 20 units require 18; above 20, 90% of units.

85% may be approved on exception for (1) a recently built/renovated property in a Top or Standard market, or (2) a purchase where the sponsor is experienced with asset-management capability, appraised occupancy/rents are materially above current operations, historical occupancy is stable, and the property has no serious crime history.

Entity

LLCs and corporations organized in any state or DC

Citizenship

US citizens and legal permanent residents

Minimum FICO

700 (highest guarantor's score may be used; every guarantor ≥ 620). Tri-merge report ≤ 90 days (120 for repeat borrowers with clean 12-month history)

Credit history

Fraud-engine pull required · 2+ active lines, one with 24+ months · no BK / FC / short sale / DIL in 4 years · judgments, liens, charge-offs, non-medical collections paid in full

Mortgage history

Max 0x30x12

Gifts

Not allowed

Recourse

Full recourse with warm-body guaranty. Guarantors must hold ≥ 51% of the entity (including day-to-day managers). Limited recourse not allowed.

Experience

12+ months owning similar-sized multifamily. Section 8 sponsors: 3+ owned & stabilized Section 8 rentals (similar size, same submarket, 12+ months)

• Net worth: loans < $3M → 25% of the loan amount; loans ≥ $3M → 1.5x the loan amount
• Post-closing liquidity: ≥ 5% of the loan amount
• All loans to the same borrower/guarantors closing within 6 months count toward the reserve requirement
• Purchases: additionally, liquid reserves must cover all PCA items flagged Critical or Immediate Repair

• One full narrative commercial appraisal by an MAI appraiser, dated ≤ 120 days (180 with recertification); USPAP/FIRREA compliant
• Hybrid appraisal, BPO, or internal valuation is NOT allowed
• Third-party inspection + construction-budget review required for any MF property purchased and rehabbed in the last 2 years
• RSRA pulled on every property; Elevated/High risk requires a full Phase I ESA
• PCA report required for all loans of $3M+

Approved commercial appraisers

Bowery · CBRE · Colliers · Cushman & Wakefield · Newmark

Approved environmental firms

AEI Consultants · Dominion Due Diligence Group · EBI Consulting · Partner Science and Engineering

Title

Approved underwriters include Fidelity National Title Group, First American, Old Republic, Stewart, Westcor, WFG, and others; all title/escrow/closing attorneys must be vetted by Secure Insight before closing.

California, Arizona, Oregon, and Minnesota carry TPO-licensing conditions (DRE/CFL in CA, AZ Mortgage Broker license, OR Mortgage Lending license, Diya-only closings in MN) — SLA treats these as not eligible on the sizer; escalate to a manager for case-by-case review.

Note: unlike the 1-4 unit DSCR program, Idaho is excluded for Multifamily.