Can I get a DSCR loan on a mixed-use property?
Yes, DSCR loans are available on mixed-use property with a subset of lenders, typically requiring the commercial space to be leased with 1 or more years remaining on the lease and commercial income to stay under 25 to 49 percent of total gross rent, at 20 to 30 percent down. The coverage ratio is calculated on combined residential and commercial rent against the full payment, same as a standard DSCR loan.
What qualifies
| Requirement | Typical standard |
|---|---|
| Residential units | 1 to 4, occupied or market-rented |
| Commercial space | Leased, with 1+ years remaining on the lease |
| Commercial income share | Under 25 to 49 percent of gross rent, lender-specific |
| DSCR | 1.00 to 1.25 minimum, combined income vs full payment |
| Down payment | 20 to 30 percent |
| Credit | 660 and up, same as standard DSCR |
Ranges vary by lender; not every DSCR lender offers mixed-use at all.
How the ratio is calculated
Same formula as a standard DSCR loan: total monthly rent, residential plus commercial, divided by the full payment including principal, interest, taxes, and insurance. A building with $2,800 in residential rent and $1,200 in commercial rent against a $3,200 payment has a DSCR of 1.25.
What disqualifies a file with most lenders
- Vacant commercial space. No income to underwrite; a bridge loan or a lease-up plan is the usual path first.
- Commercial income over the lender's cap. Moves the file to commercial underwriting.
- A short-term or month-to-month commercial lease. Lenders want 1 or more years remaining, often 2 or more for the best pricing.
- A specialty commercial use such as a restaurant with heavy buildout, which some lenders avoid regardless of lease length.
- 5 or more residential units. Automatically commercial with most lenders.
The appraisal
Mixed-use DSCR loans typically use a residential appraisal form with a commercial income addendum, cheaper and faster than a full commercial narrative appraisal, which is part of why the DSCR path is attractive when it is available.
Finding a lender that does it
Not every DSCR lender writes mixed-use loans, and among those that do, the commercial-income cap and eligible commercial uses vary widely. This is a case where shopping matters more than most DSCR scenarios.
A worked example
Duplex over a hair salon, salon pays $1,100 a month on a lease with 3 years remaining, apartments rent for $1,600 and $1,500. Total rent $4,200, commercial share 26 percent. Full payment $3,300. DSCR 1.27. This fits comfortably within most mixed-use DSCR programs.
How CommFi handles it
Our lending desk checks the lease terms and the commercial income share against the DSCR mixed-use lenders it works with, and prices the file first. It funds direct when it fits, and when a specialist mixed-use DSCR lender is the right match, the desk searches a database of 7,000+ lenders and the ones that fit compete for the file. Zero upfront fees.
Related questions
- Can I get a DSCR loan on a mixed-use property?
- Yes, with lenders that specifically offer it, usually when the commercial space is leased and commercial income stays under 25 to 49 percent of total rent.
- Does the commercial lease term matter for a DSCR mixed-use loan?
- Yes. Most lenders want 1 or more years remaining, and 2 or more for the best pricing.
- Can I get a DSCR loan on mixed-use with a vacant commercial unit?
- Rarely. Most DSCR mixed-use lenders require the commercial space to be leased and producing income.
- How is DSCR calculated on a mixed-use property?
- Combined residential and commercial rent divided by the full payment, the same formula as a standard DSCR loan.
- Do all DSCR lenders offer mixed-use financing?
- No. It is a subset of lenders, and their commercial-income caps and eligible uses vary, so shopping matters.
Property developer and licensed appraiser. 22+ years in real estate: TIC conversions, multi-unit redevelopments, mixed-use, fix and flips, commercial DSCR.