Loan
Refinancing duplexes, triplexes, fourplexes and small apartment buildings
Small multifamily sits between residential and commercial lending. Two to four units usually fall under residential-style DSCR programs; five units and up often move into small-balance commercial underwriting. We help you see which side of that line your building lands on and what that means for the refinance.
Who this fits
- Owners of duplexes, triplexes and fourplexes held purely as rentals
- Investors with small apartment buildings looking for long-term fixed debt
- Buyers who repositioned a building and need to exit short-term financing
- Mixed-use owners with residential units above a storefront (program-specific)
Why unit count matters
For 2-4 units, lenders commonly use a rent schedule from the appraiser plus your leases, and calculate DSCR on the whole building. For five or more units, many programs underwrite more like commercial real estate: net operating income, expense ratios and a closer look at management.
The difference affects documentation, timelines and the kinds of loan structures available. Knowing the lane early avoids ordering the wrong appraisal.
What to prepare
- Current rent roll and copies of leases
- A trailing operating statement for larger buildings
- Most recent property tax bill and insurance declarations
- Current mortgage statement and payoff estimate
- A list of recent capital improvements
We are a mortgage broker. We arrange and shop financing from wholesale lenders; we do not lend our own money. Business-purpose loans on non-owner-occupied investment property only.
How it works
Four steps, no surprises
Send the rent roll
Unit-by-unit rents, lease dates and any vacancies.
Confirm the lane
We determine whether residential DSCR or small-balance commercial programs fit best.
Compare offers
We weigh leverage, amortization, prepayment and reserve requirements across wholesale lenders.
Close
Appraisal with rent schedule or income approach, title and underwriting.
Questions
Common questions
Can I live in one unit of a fourplex and use a DSCR loan?
No. We only arrange business-purpose financing for property that is entirely non-owner-occupied. If you or your family live in any unit, it is outside what we do.
What if some units are vacant?
Lenders handle vacancy differently. Some use market rent for vacant units, others require a minimum number of units to be leased. We match the file to programs with workable vacancy rules.
Is a five-unit building much harder to refinance?
Not harder, but different. Five-plus unit buildings often go through small-balance commercial programs with their own documentation and underwriting style.
Next step
Bring us the loan you have. We will show you the loans you could have.
Share your current balance, rent and maturity date. A Loan Daddy loan specialist will compare what wholesale lenders can offer for a business-purpose refinance and walk you through the trade-offs, without pressure.