Several rents. One financing decision
A small multifamily property multiplies the rents and the review points. This page covers what the extra units add to the file.
Business-purpose investment financing. Stonehaven Lending is a mortgage brokerage. Subject to lender underwriting, documentation, valuation and program availability. Preliminary review is not approval or a commitment. NMLS #1752355.
Two-to-four-unit properties can finance under residential DSCR programs: the units' combined eligible rent is sized against the property's qualifying payment (PITIA). The relevant limitation: every unit must survive review, meaning legal status, condition and rent evidence per unit, and this page addresses investment financing, not owner-occupied multifamily purchases, which follow different rules elsewhere.
An illustrative triplex review
A buyer evaluates a triplex where two units hold long leases and the third was converted by a prior owner. If the third unit's legal status cannot be verified, programs may not count its rent, and the deal's math changes immediately. Illustrative example, not a customer.
The rent roll is the headline; the units' paperwork is the story underneath it.
Small multifamily against single-family, for financing purposes
More units mean more rent lines supporting one payment, which can stabilize the ratio against a single vacancy. They also mean more review surface: per-unit legality, per-unit condition, per-unit evidence. The financing product is the same family; the file is denser.
At five or more units the property leaves residential classification entirely and routes to commercial analysis. If your growth plan crosses that line, see the portfolio page for the routing.
Rent-roll and unit review list
The per-unit file, assembled before underwriting asks:
Rent roll, current and complete
Every unit: rent, lease term, deposit, tenancy start. Blanks read as findings.
Unit legality
Permits or records for each unit, especially any converted or added space. Non-conforming units may not count.
Occupancy status
Which units are occupied, at what rent, on what paper; vacant units invoke program-specific market-rent treatment.
Per-unit condition
Deferred maintenance in one unit affects the whole property's appraisal and eligibility.
Meters, utilities and access
Separate metering and lawful unit access are appraisal-visible facts worth knowing early.
Beyond the ratio
Rental income treatment is one input. These commonly shape eligibility and terms as well:
- Combined eligible rent across counted units
- Legal status of every unit
- Property condition and appraisal results
- Occupancy mix and rent evidence per unit
- Credit, leverage and reserves as everywhere
Asked before anyone proceeds
One unit is vacant; does the deal die?
Not necessarily: programs apply defined treatments for vacant units, often the appraiser's market rent, with variations for purchase versus refinance. The mix is reviewed rather than assumed either way.
The basement unit has no permit but always rents.
Then its rent may not count and its presence may raise condition and legality questions. Better to price the property on its counted units and treat extra income as unfinanced upside.
How the preliminary review works
Send the scenario
Property numbers, rough credit picture, cash position and timing. Estimates are fine to start; no SSN is collected at this stage.
Compare the paths
A licensed specialist reviews the scenario and compares the financing structures that actually fit it, including when a different product or waiting is the better answer.
Underwriting decides
If you proceed, a lender underwrites the full file. A preliminary review is analysis, not approval, and no closing timeline is promised here.
Put the scenario in front of a specialist
Rough numbers are enough to start. The review compares the paths that actually fit, and says so when a different one wins.
Business-purpose investment financing. Stonehaven Lending is a mortgage brokerage. Subject to lender underwriting, documentation, valuation and program availability. Preliminary review is not approval or a commitment. NMLS #1752355.
Specific to this situation
Is a duplex financed like a single-family rental?
Same product family with a denser file: combined rent across units against the property's payment, plus per-unit legality and condition review. See also the first-time investor page if this is your first purchase.
Can I live in one unit and rent the rest under these programs?
This page covers investment financing; owner-occupied multifamily purchases follow different programs and rules and are not promised here. Be precise about occupancy plans in review.
How is vacant-unit rent counted?
Per program rules, commonly at the appraiser's market rent with defined haircuts or conditions, and treatment can differ between purchase and refinance. The exact rule is confirmed per program.
Does mixed occupancy (one lease, one month-to-month) matter?
It shapes evidence quality per unit and how programs weigh lease versus market figures. Bring the full picture; partial rent rolls stall files.
What happens above four units?
Residential DSCR classification ends; commercial analysis begins, with income assessed as NOI against annual debt service. Stonehaven routes those scenarios to commercial review.