Every real estate investor learns the rule early: one tofour units is a normal mortgage, five units and up is a commercial loan — balloon payment, recourse debt, and a mountain of business paperwork included.

In this episode of The Approval Advantage Podcast, 28-year mortgage veteran Mike Baltazar of Barrett Financial Group (the #1 mortgage broker by volume in the U.S. for 2025) breaks down a DSCR program that throws that old rule out —financing 5-8 unit apartment buildings and mixed-use properties using the same investor-friendly approach as a standard DSCR loan.

You'll learn:

• Why so many good 5-8 unit and mixed-use dealsget sent straight to a commercial lender by default — and what that actually costs the investor

• How this program qualifies the loan using theproperty's cash flow, not the borrower's personal income

• Why mixed-use buildings — ground-floor retail, restaurant, or office space with apartments above — can still qualify, as long as commercial space doesn't exceed 49% of the gross leasable area

The real numbers: loan amounts up to $2 million,purchase LTV up to 75%, and cash-out refinances putting up to $1 million cash in an investor's hands

• Why this is the natural next step for investorsgraduating from 1-4 unit portfolios into bigger assets

• What realtors listing small apartment ormixed-use buildings should ask before assuming a deal has to go commercial

Essential listening for realtors and listing agents workingsmall multifamily and mixed-use properties, real estate investors ready to scale past the fourplex, and financial advisors whose clients are building wealth through investment real estate.

Learn more or connect with Mike directly atwww.MikeBaltazar.com.

Topics: DSCRloan, 5-8 unit apartment financing, mixed-use property loan, multifamilyinvestment loan, commercial space financing, real estate investor loan, noincome mortgage for investors, real estate financing 2026, Barrett FinancialGroup, Mike Baltazar