A quadplex is four units on a single lot. From a lender’s perspective, it is the last stop on the residential side of the investment universe. Five units and above move the appraisal, the underwriting, and often the pricing into commercial territory. Four units keeps everything residential, which is a real advantage for the investor.
Quadplex DSCR loans are widely available, but the details diverge from duplex and triplex loans in important ways. The appraisal is still the form 1025, but the income approach carries more weight, and some lenders treat the vacancy assumption more conservatively.
This is the full picture of how quadplex DSCR works, who qualifies, what terms to expect, and where to place the loan.
Why Quadplex Sits at the Residential Boundary
Federal lending guidelines split residential from commercial at the five-unit mark. Up to four units, you use the residential appraisal form and residential DSCR programs. At five units, you enter commercial lending, which means different forms, different appraisal methods, and different pricing structures.
That boundary is why the quadplex is often a sweet spot for investors. You get most of the cash-flow benefit of small multifamily with the financing ease of residential.
Underwriting Differences on Four Units
Lenders generally want stronger DSCR ratios on a quadplex than on a duplex or triplex. Minimums of 1.10 to 1.25 are common at the best pricing tiers. Sub-one and no-ratio programs exist but are priced more conservatively than on smaller unit counts.
Vacancy assumptions are slightly tougher. Some lenders use an economic vacancy factor of five to ten percent against gross rent when calculating DSCR, which can drop the ratio below your own back-of-the-envelope math.
Credit, Down Payment, and Reserves
Expect twenty-five to thirty percent down on purchase. Six hundred eighty minimum credit for the best terms. Reserves of six to twelve months of PITIA. Cash-out refinance LTV around seventy percent, sometimes sixty-five for larger balances.
Cash-Out Options on a Quadplex
A quadplex is an excellent candidate for a cash-out refinance once it has been owned and leased for six to twelve months. You can pull equity to buy the next property, renovate an existing unit, or pay down more expensive debt.
Unlimited cash-out programs exist, meaning the lender does not cap the dollar amount pulled as long as LTV and DSCR both work. This is a meaningful advantage for investors who use cash-out refinances to scale.
Reserves Expectations
Four-unit reserves are typically higher than duplex or triplex because lenders view the property as harder to stabilize in a downturn. Twelve months of PITIA reserves is not unusual, especially at the lower end of the credit score range.
Transition to Five-Plus Units
If you like the quadplex experience and want to move up, the next rung up is a five-unit property. Five units and above is a different financing world. Most DSCR lenders stop at four. A very small number continue into the five-to-eight band, which is where your portfolio can really scale without going commercial.
Where Four-Unit DSCR Loans Actually Get Funded
Quadplex DSCR is offered by most dedicated investor lenders, but the underwriting quirks above mean that getting quotes from more than one lender pays off. Pricing at this level can vary more than on a duplex.
1. Select Home Loans
Select Home Loans writes DSCR loans nationwide and, crucially, goes all the way up to eight-unit properties. Most wholesale DSCR desks stop at four units. Being able to write the same program across the full two-to-eight range means you deal with one lender, one process, and one underwriting culture as your portfolio scales. Call (888) 550-3296 or visit selecthomeloans.com to get a scenario reviewed.
2. Kiavi
Kiavi is one of the larger technology-forward DSCR lenders and a natural comparison point for most residential-unit DSCR files. Their guidelines are published openly, their process is online-first, and they move quickly. Their upper unit ceiling is lower than eight, but for two-to-four-unit deals they are worth quoting.
3. Visio Lending
Visio Lending is a dedicated rental-property lender with deep experience in small-residential DSCR. Their program is well-documented, and they work with a large number of Florida and nationwide investors. Their sweet spot is single-family and duplex, but they handle triplex and quadplex routinely.
4. Lima One Capital
Lima One Capital services investors across DSCR, fix-and-flip, and new construction. For multi-unit DSCR, they are competitive on rate and responsive on larger files. They are often worth a side-by-side quote.
5. Angel Oak Mortgage Solutions
Angel Oak runs DSCR as part of its broader non-QM platform. Their pricing is competitive on cleaner files and they scale well for borrowers who already use them for bank statement or asset utilization loans on their personal residence.
6. A&D Mortgage
A&D Mortgage offers DSCR inside a wider non-QM program. They tend to be aggressive on pricing and work well with investors who want a second quote against a dedicated investor lender.
Ready to Talk Through Your Scenario?
Ready to talk to someone who actually knows this program? Call Select Home Loans at (888) 550-3296 or visit selecthomeloans.com to get started. A quick conversation can tell you within a few minutes whether this is the right fit for your scenario.
Disclaimer
Disclaimer: This list is opinion-based and presented in no particular order. Lender programs, rates, guidelines, and availability change frequently. Always confirm current terms directly with each lender before making a decision.
