Grow Your Portfolio
with Confidence

A DSCR (Debt Service Coverage Ratio) loan qualifies a multifamily property based on its rental income rather than the borrower's personal income. No W-2s, tax returns, or employment verification are required. If the property's net operating income covers the mortgage payment at a 1.0–1.20 DSCR, the loan qualifies. DSCR loans are available for 2–50+ unit properties, close in LLC names, and have no property count limits.

A bridge-to-agency refinance is a two-stage financing strategy: acquire and renovate the apartment building with a short-term bridge loan (12–36 months, interest-only), then refinance into permanent Fannie Mae or Freddie Mac agency debt once the property reaches 90%+ occupancy. Agency debt offers the lowest multifamily rates — typically 20–100 bps below bank quotes — with non-recourse terms up to 30 years.

A value-add apartment deal involves acquiring an underperforming property (below-market rents, deferred maintenance, high vacancy), executing capital improvements, increasing rents to market, and refinancing at a higher value. Light value-add ($5K–$15K/unit) typically targets cosmetic upgrades; heavy value-add ($20K–$60K+/unit) involves full gut renovations. Bridge loans fund the transition period; agency or DSCR loans provide permanent financing.

Oregon's statewide rent stabilization law (SB 608) caps annual rent increases at 7% + CPI (max 10%) for units over 15 years old. Above-cap increases only occur on vacancy, which extends value-add stabilization timelines to 24–36 months on many deals. Investors need to model unit-by-unit turnover projections and use patient capital structures — like 40-year fixed DSCR loans — that don't force action on a shorter timeline.

Yes. DSCR loans are the ideal permanent financing exit in a BRRRR cycle (Buy, Rehab, Rent, Refinance, Repeat). After renovating with hard money or a bridge loan, the investor refinances into a DSCR loan — qualifying on rental income alone, recovering capital through a cash-out refinance, and locking in interest-only payments with a 40-year fixed term. No property count limit means the cycle scales indefinitely.

Minimum credit scores vary by program: DSCR loans start at 620–680 (720+ for the best rates), conventional 2–4 unit loans require 660–680, and agency programs for larger apartments typically require 680+. Higher credit scores unlock lower rates, higher LTV, and more favorable terms across all programs.

Down payments range from 15% (FHA on owner-occupied 2–4 units) to 25–40% for investment-only multifamily. DSCR loans typically require 20–25% down. Small balance multifamily (5–50 units) generally requires 25–30%, while large apartment agency loans can go as low as 20% LTV for stabilized properties with strong sponsors.

DSCR loans close in 21–30 days. Bridge loans can close in 10–21 days. Agency loans (Fannie/Freddie) take 45–90 days due to their extensive underwriting process. Construction loans typically require 60–90 days. At Lumen Mortgage, we provide custom term sheets within 24 hours and prioritize closing speed for time-sensitive acquisitions.