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Fourplex (Quadplex)

A 4-unit residential property. The largest property still classified as residential (not commercial) for DSCR purposes; eligible for 80% LTV and standard DSCR pricing.

Why it matters on a DSCR loan

The fourplex is the sweet spot for many DSCR investors: four rent checks under one roof while still qualifying as residential, avoiding the tighter terms of 5+ unit commercial multifamily. Because DSCR is calculated on aggregate rents against one PITIA, a single vacancy hurts far less than it would on a single-family rental. The classic mistake is stepping up to a five-unit building for marginally more income and unknowingly crossing into commercial underwriting with lower LTV and different appraisal requirements.

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Reviewed by Arin Baghermian, Broker Owner — NMLS #1220456 · Last reviewed July 2, 2026 · DSCR Capital Partners is a brand of UTM Financial, LLC (NMLS #2591548).