2–4 Unit Refinance in New Hampshire Where Rental Income Actually Counts
Duplex, triplex, or fourplex: we place 2–4 unit files through conventional, DSCR, and non-QM channels, so the answer depends on your goal, not on one lender's single product.
- Cash-out ceiling: 75% LTV on an owner-occupied 2–4 unit, 70% on an investment 2–4 unit.
- Rate-and-term ceiling: up to 95% LTV on a 2–4 unit principal residence, far more room than cash-out.
- Rental income: conventional guidelines credit 75% of gross rents toward qualifying.
- No tax returns? DSCR qualifies the property on its own rent-to-payment coverage instead of your DTI.
Can you refinance a 2–4 unit property in New Hampshire?
Yes, and 2–4 unit properties in New Hampshire can be refinanced through three separate channels, with the right one determined by how your income documents look rather than by the property itself.
Conventional financing allows cash-out to 75% LTV on an owner-occupied 2–4 unit and 70% on an investment 2–4 unit, using 75% of gross rents toward qualifying income. DSCR loans skip personal income documentation entirely and qualify the property on its own rent-to-payment coverage. Bank statement programs sit between the two for owners who are self-employed outside the rentals as well.
Most owners we speak with in the Nashua–Hudson–Merrimack corridor assume they're limited to whatever their bank offers on a single-family home. They usually aren't. If you're weighing a broader set of goals first, start with our refinance options by situation.
Three ways to refinance a 2–4 unit property
The property is the same in all three columns. What changes is how the lender proves you can afford it, and that single difference drives the rate, the ceiling, and the paperwork.
| Conventional (Agency) | DSCR | Bank Statement / Non-QM | |
|---|---|---|---|
| How income is verified | Tax returns, W-2s, leases or Form 1007 rent schedule | Property rent vs. property payment, no personal income docs | 12–24 months of business or personal bank deposits |
| Max cash-out LTV | 75% owner-occupied · 70% investment | Typically up to 75% | Varies by investor, commonly 70–80% |
| Occupancy allowed | Primary, second home, investment | Investment / business purpose only | Primary and investment |
| Best for | W-2 owners whose returns show the income | Landlords with heavy write-offs or many doors | Self-employed owners with strong deposits, weak returns |
| Trade-off | Most paperwork, best pricing | Higher rate, seasoning expectations | Higher rate, deposit history required |
Guidelines shown are typical agency and wholesale parameters and are subject to program, investor, and credit-profile overlays. Your file is priced on its own facts.
The one-line rule: if your Schedule E already shows the income, go conventional. If depreciation and write-offs buried it, go DSCR.
How rental income is counted
Rental income does count, but lenders discount it. Conventional guidelines credit 75% of gross rents, a built-in 25% allowance for vacancy and maintenance.
That income is documented either by your existing leases or by the appraiser's Form 1007 comparable rent schedule, attached to the Form 1025 small residential income property appraisal your file will require. Whichever number is lower usually controls.
Owner-occupied 2–4 units
You live in one unit; the rest count. On a duplex only one unit's rent is credited, but on a triplex or fourplex every non-occupied unit contributes, which is why three- and four-family owners often qualify for more than they expect.
Investment 2–4 units
Underwriting leans on your Schedule E history rather than the leases alone. This is where owners get caught: the depreciation and expense write-offs that saved real tax dollars are the same entries that shrink your qualifying income.
When DSCR wins instead
DSCR divides the property's rent by its full payment including taxes and insurance. Most programs want that at 1.00 or better and expect roughly six months of ownership before a cash-out, with no DTI calculation at all.
If you're self-employed outside of the rentals, your deposits may tell a better story than your returns do; see bank statement loans. If you want equity out without documenting income at all, see no-income cash-out refinance.
How much can you actually pull out?
On a conventional cash-out refinance, a 2–4 unit primary residence caps at 75% loan-to-value and a 2–4 unit investment property at 70%, meaningfully tighter than the 80% ceiling on a single-family home.
Rate-and-term refinances are a different world. Fannie Mae allows up to 95% LTV on a 2–4 unit principal residence, so owners who only want a lower payment, a shorter term, or mortgage insurance removed have far more room than owners taking cash.
| Scenario | Max LTV | What that means |
|---|---|---|
| Rate-and-term, owner-occupied 2–4 unit | Up to 95% | Lower the rate or drop MI with very little equity |
| Cash-out, owner-occupied 2–4 unit | 75% | 25% of value must stay in the property |
| Cash-out, investment 2–4 unit | 70% | The tightest agency ceiling on this property type |
| DSCR cash-out | Typically up to 75% | Often more proceeds than agency on a rental |
A Nashua example
Take a three-family valued at $650,000 with a $310,000 balance, owner-occupied. At the 75% cash-out ceiling the new loan tops out around $487,500, leaving roughly $177,500 in gross proceeds before closing costs and escrows.
The same owner who only wants a lower payment isn't held to 75% at all; rate-and-term reaches up to 95%, which changes the conversation entirely.
What's different about New England multi-family
Most 2–4 unit stock in southern New Hampshire predates 1960, and that single fact drives more declined or delayed multi-family files than credit or income ever does.
Older housing stock
Knob-and-tube wiring, original two-pipe heating, and unpermitted attic or basement conversions all surface at the appraisal. Knowing which of these an underwriter will flag, and which can be conditioned around, is the difference between a two-week delay and a dead file.
Single-meter utilities
Plenty of Nashua two-families still run on one electric and one heating meter. That affects both the appraised value and the expense side of your DSCR math, so it should be priced into the plan before the appraisal is ordered rather than after.
Property tax revaluations
New Hampshire funds itself through property tax, and when a revaluation lands it lands on every unit at once. Escrow re-analysis can add several hundred dollars a month to a multi-family payment, and it moves your coverage ratio at the same time.
Tenant access
A Form 1025 appraisal requires interior access to every unit. The single most common cause of a stalled 2–4 unit refinance in this market is scheduling three or four tenants, so we start that conversation on day one instead of week three.
We work the Nashua, Hudson, Merrimack, Litchfield, and Manchester corridor every week, and we're licensed across New Hampshire, Massachusetts, Maine, Rhode Island, and Florida.
What you'll need to apply
Three lanes, three very different document lists. This is usually the moment owners realize which one they belong in.
Conventional
- Two years of tax returns with Schedule E
- Recent W-2s and pay stubs
- Current leases for every occupied unit
- Mortgage statement and homeowners policy
- Two months of asset statements
DSCR
- Current leases or a market rent schedule
- Mortgage statement and insurance declaration
- Property tax bill
- Entity documents if the property is in an LLC
- Credit report, no income documents
Bank Statement
- 12–24 months of business or personal statements
- Business license or CPA letter
- Current leases for the rented units
- Mortgage statement and homeowners policy
- Property tax bill
How a 2–4 unit refinance works
Most 2–4 unit refinances close in 30 to 45 days. The variable is almost never underwriting; it's appraisal access.
Consultation
We look at the property, the rents, and your income documents together and tell you which of the three lanes fits, usually on the first call.
Application and documents
You upload the checklist for your lane. We pull credit and run the file through automated underwriting the same day where the program allows it.
Appraisal ordered
A Form 1025 with a Form 1007 rent schedule. We give you notice language for your tenants immediately so scheduling doesn't become the bottleneck.
Underwriting
Income, rents, and property condition are reviewed together. Conditions come back as one consolidated list rather than in a drip.
Clear to close
Final figures, escrow setup, and your Closing Disclosure. You'll see the new payment broken down unit by unit.
Closing
Sign locally. On a cash-out, funds disburse after the three-day rescission period on an owner-occupied property.
2–4 unit refinance questions
Does rental income help me qualify for a refinance?
Yes. Conventional guidelines credit 75% of gross rents toward your qualifying income, with the remaining 25% held back for vacancy and maintenance. The income is documented by your existing leases or by the appraiser's Form 1007 rent schedule, and on a triplex or fourplex every unit you don't occupy contributes.
What's the maximum cash-out on a 2–4 unit property?
Conventional cash-out caps at 75% LTV on an owner-occupied 2–4 unit and 70% on an investment 2–4 unit. DSCR programs commonly reach 75% on rentals. If you don't need cash and only want a lower payment, rate-and-term reaches up to 95% LTV on a 2–4 unit principal residence.
Can I refinance a multi-family property without tax returns?
Yes, through a DSCR loan. The property qualifies on its own rent-to-payment coverage rather than your personal income, so there are no tax returns, W-2s, or debt-to-income calculation. Most programs want coverage at 1.00 or better and expect roughly six months of ownership before a cash-out.
Do I have to live in one of the units?
No. All three lanes handle investment 2–4 units. Occupancy changes your ceiling rather than your eligibility: owner-occupied files get the higher cash-out limit and better pricing, while DSCR is available only on non-owner-occupied, business-purpose properties.
Can I refinance a 2–4 unit held in an LLC?
On a DSCR or non-QM loan, yes: entity-titled properties are standard there. Conventional financing generally requires title in your personal name, though a property previously held by an LLC you control can often still be refinanced. Bring the operating agreement to the first call either way.
Will my tenants need to be involved?
Only for the appraisal. A Form 1025 requires interior access to every unit, so each tenant needs reasonable notice for a single visit. We provide notice language at application, because tenant scheduling is the most common cause of delay on multi-family files in this market.
Is a DSCR loan more expensive than a conventional refinance?
Generally yes: DSCR carries a higher rate than agency financing because there's no personal income backstop. The comparison that matters isn't rate against rate, though; it's a closed DSCR loan against a conventional file that your Schedule E won't support. We'll price both before you choose.
Find out which lane your property is in on the first call
Send us the rents, the balance, and a rough value. We'll tell you what's realistic, including when the honest answer is that refinancing isn't your best move right now.
NextGen Mortgage Loans · NMLS #1621958 · Nashua, New Hampshire · Licensed in NH, MA, ME, RI & FL · Equal Housing Opportunity. Program guidelines shown are typical and subject to investor overlays, credit approval, and property eligibility. This is not a commitment to lend.
MLO License Info: NMLS #1621958, NH Broker license #1621958MBRR, and MA Broker license #MB1621958, ME Broker License #1621958, FL Broker License #MBR4542, RI Broker License #20265029LB
Company
Services
Contact
