A business-purpose loan on a residential building of five to ten units, or a mixed-use building of two to eight units that is mainly residential, based on the rent the building brings in rather than your personal income. No tax returns or pay stubs; credit, assets, experience and the appraisal are still checked.
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Fidelity Residential · NMLS #103098 · Equal Housing Lender
A residential building of five to ten units, or a mixed-use building of two to eight units with homes and a shop, office or restaurant, can be financed on the rent it brings in. As on a smaller rental, the lender compares the building’s total rent with its full monthly payment, including taxes, insurance and any association dues, and the rent must cover the payment by the margin the program sets. On buildings this size that margin is higher than on a single rental, and no program accepts a ratio below one or a loan with no ratio at all.
The rent is counted carefully. Vacancies are limited, usually to two units, and a vacant unit counts at a reduced rent or only after a renovation. Most programs take off any management fee the appraiser shows, and income from short-term rentals is not counted on these buildings.
A building this size is valued like a small commercial property. The appraiser inspects every unit and reports the rent roll and the building’s income and expenses; a second valuation is usual. Nobody on the loan may live in the building, you sign business-purpose and occupancy statements, and the owners back the loan personally.
Not for a building you or your family will live in, a building let by the night or week, or a purely commercial property.
Each program sets its own rules for the building. These are the main kinds we finance.
Buy or refinance a small apartment building of five to ten units on its rent. The building is valued like a small commercial property, so the appraisal, the reserves and the experience the programs want all ask for more than on a single rental.
Buildings with homes and a shop, office or restaurant. The commercial space is limited to about half the building and must bring in less than half the income, it must be retail, office or restaurant space, and it must be leased. Your own business may occupy a commercial unit.
Buy a building, refinance to change the loan, or take cash out of a building you own for business purposes. The most you can borrow against the value depends on the units, the ratio, your credit and the loan size.
How a cash-out refinance worksBusiness purpose investor loans are for investment property only. A building of one to four units is financed on our DSCR loan instead, and several rental homes can go under one portfolio rental loan.
The rent replaces your income, not the rest of the file. Each figure below is the most lenient term of one of the programs we use; they do not all apply to the same loan, and the terms for your building depend on your file.
The figures above were checked on 12 October 2026 against the programs we use and will be reviewed by 12 November 2026. They are program limits, not an offer, a rate or a loan decision; programs change their terms without notice, and the terms for your building depend on credit, the rent, the appraisal and underwriting review. Business purpose investor loans are for investment property only.
The address, the number of units, any commercial space, the rent roll, how you will hold title, and whether you are buying, refinancing or taking cash out. No income documents.
We check credit for each borrower or guarantor, you send statements for the down payment, closing costs and reserves, and you list the rental property you own or manage.
The appraiser inspects every unit and reports the rent roll and the income and expenses; a second valuation follows. We work out the ratio from the qualifying rent and the full monthly payment.
You sign the business-purpose and occupancy statements and, for a company, a personal guarantee. Then underwriting, title, insurance and closing.
No tax returns or pay stubs. Most investors can start with these.
No. These are business-purpose loans for investment property. Nobody on the loan may live in the building, and you sign a statement saying so.
Usually, yes. Most programs for buildings of this size want a recent record of owning and managing rental property. One program considers first-time investors on tighter terms, with a long-term tenant in place. Tell your loan officer about the properties you own now.
Not on these buildings. A unit let by the night or week is not counted toward the rent. For a house, condo or two to four units let short-term, see our short-term rental loans.
A building of two to eight units that is mainly residential, with a shop, office or restaurant on part of it. The commercial space is limited to about half the building and must bring in less than half the income, and it must be leased. Your own business may occupy one of the commercial units.
Like a small commercial property. The appraiser inspects every unit and reports the rent roll and the building’s income and expenses. A second valuation, a broker price opinion or a desk review, is usual, and the largest loans need two appraisals.
Rent-loss insurance on every building, and commercial liability cover as well on a mixed-use building.
Prepayment penalties apply in the first years where the law allows them, and versions without one exist. Your loan officer explains the choices before you decide.
A building of five or more units gets its own loan. Several rental homes of one to four units each can go under one loan for experienced investors: see our portfolio rental loans.
Fidelity Residential is licensed in many states. The full, current list is on NMLS Consumer Access (opens in a new tab), or call us at 732-686-9999. Business purpose loans follow their own list of states; a loan officer can confirm it for your building.
Get a quote, apply online, or talk the deal through with a licensed loan officer.
This page is general information, not a commitment to lend. Programs, terms and eligibility depend on credit, property, rent and underwriting review and are subject to change without notice. Business purpose investor loans are for investment property only.
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