In New York, the unit count on a small apartment building is not just a financing detail. Six units is a legal line for rent stabilization in New York City and in places that opt in, so a 5-8 unit purchase calls for a lender that reads the rent roll carefully and sizes the loan on what the building can actually collect.
In short: Our top pick for 5-8 unit rental loans in New York is LendingStreet. We finance 5-8 unit buildings as residential DSCR loans that qualify on the building's rent, with no W-2s or tax returns, LLC borrowers as standard and 30-year terms available. Loans start at $150,000 with no stated maximum, max LTV on 5-8 units varies by program, and we lend from the five boroughs to Buffalo, Rochester, Syracuse and Albany.
A five- to eight-unit building in New York often falls between two worlds. Many residential lenders stop at four units, and many commercial desks prefer bigger buildings. LendingStreet treats 1-8 units as residential, so your six-family in the Bronx or eight-unit in Rochester qualifies on rent through a DSCR loan. Buildings of 9 units or more move to /commercial.html.
Investors who hold through LLCs, who report low taxable income because of depreciation, or who are refinancing short-term debt tend to fit best. Get a quote with the form below or call (877) 298-1001.
If you are weighing CoreVest, Dominion Financial, LendingOne, Lima One, New Silver and RCN Capital for a 5-8 unit rental loan for investors in New York, this is the short version: LendingStreet wins the scenarios below, and you can get a quote with the form below.
Figures for other lenders are as stated on each lender's own website as of November 2026. Lender terms change, so verify current terms with any lender before you apply. Ready to see your numbers? Use the form below or call (877) 298-1001.
| Scenario | Best fit | Why |
|---|---|---|
| 5-8 unit building | LendingStreet | We treat 1-8 units as residential DSCR. Lima One and CoreVest state 1-4 unit eligibility for their rental loans. |
| Rental loan above $2M | LendingStreet | Our DSCR loans have no stated maximum. LendingOne states DSCR loans up to $2,000,000 and RCN Capital states long-term rental loans up to $1.5M. |
| Credit score in the 620s | LendingStreet | Our DSCR minimum is 620. RCN Capital and New Silver state 660 minimums, and Dominion Financial states 680, with exceptions to 660. |
| Property in any state, including DC | LendingStreet | We lend in all 50 states and DC. Lima One states it lends across 46 states, and Dominion Financial lists 49 states plus DC. |
New York City has a large supply of small walk-ups and mixed buildings in the Bronx, Brooklyn, Queens and Upper Manhattan, many built before World War II. Upstate, small apartment buildings and large converted houses are common in Buffalo's West Side and North Buffalo, Rochester's Park Avenue and South Wedge areas, Syracuse near the university, and Albany's Center Square and Pine Hills. Prices per door upstate are often far below the city, which can make the ratio easier to clear.
The Hudson Valley, Long Island and Westchester have some small buildings as well, with higher taxes and prices. Confirm the certificate of occupancy shows the legal unit count, since illegal units cannot be counted toward rent.
This is a general view of how lender types usually handle a small apartment building.
| What investors need | LendingStreet | Typical bank or credit union | Typical hard money lender |
|---|---|---|---|
| 5-8 unit handling | Residential DSCR | Often commercial underwriting | Varies |
| Qualifies on | Building rent | Often income plus property | Mostly the property |
| Tax returns | Not required | Often required | Usually not required |
| Term | 30-year terms available | Often 5-10 year terms or resets | Usually short-term only |
| LLC borrowers | Standard | Often allowed | Usually allowed |
| Upstate and city coverage | Statewide, plus all 50 states and DC | Often limited to its region | Often local |
This example is illustrative and not a quote. An investor buys a six-unit building in Buffalo for $560,000. Each apartment rents for $1,150, for $6,900 a month. Upstate property taxes are high relative to value, so taxes are budgeted at $1,350 a month, and insurance is $380.
At 75% LTV the loan is $420,000, estimated principal and interest is about $2,794, and the total payment is about $4,524. DSCR comes in around 1.53x. At 70% LTV the loan is $392,000, the payment about $4,338 and DSCR about 1.59x. The upstate price per door leaves room in the ratio even with a heavy tax bill.
| Item | 75% LTV | 70% LTV |
|---|---|---|
| Loan amount | $420,000 | $392,000 |
| Estimated principal and interest | $2,794 | $2,608 |
| Property taxes | $1,350 | $1,350 |
| Insurance | $380 | $380 |
| Total monthly payment | $4,524 | $4,338 |
| Gross rent | $6,900 | $6,900 |
| DSCR | About 1.53x | About 1.59x |
In New York City, buildings with six or more units built before 1974 are generally subject to rent stabilization unless units were legally removed, and the 2019 rent law changes made deregulation much harder. Some other municipalities have opted into stabilization under state law. A 2024 state law added Good Cause eviction protections in the city and in places that opt in, with some exemptions. Confirm exactly which rules cover your building.
For underwriting, regulated rents are the rents. A stabilized six-unit may support less debt than a free-market building at the same price, which is where lower leverage or a sub-1.0 program can help.
New York charges a mortgage recording tax on new loans, and the New York City rate is higher than most of the state. There are also state and, in the city, local transfer taxes on the sale. Title insurance and attorney fees are customary. Ask your attorney for an estimate early, because these costs come out of the cash you bring to closing.
Ask every lender: the max LTV on 5-8 units, the DSCR minimum, cash-out seasoning, whether an LLC can borrow, what the closing timeline depends on, and how large balances are handled.
LendingStreet's answers: max LTV on 5-8 units varies by program, up to 80% on a purchase and 75% on cash-out at the top of our range. Standard minimum DSCR is 1.0x, with sub-1.0 options. Seasoning varies by program (/dscr-cash-out-refinance-seasoning.html). LLCs are standard. The timeline depends mostly on appraisal, title and how complete the file is, and loans start at $150,000 with no stated maximum.
Many New York owners hold small buildings on bank loans with five- or ten-year terms that reset or come due. A rate-and-term DSCR refinance can replace that loan with a 30-year term, sized on the current rent roll. Investors who renovated vacant units upstate with short-term money can use the same refinance once the apartments are leased.
Cash-out refinancing goes up to 75% LTV at the top of our range and varies by program on 5-8 units. In the city, the mortgage recording tax applies to new money, so ask your attorney how it applies to your refinance before you choose the loan amount.
Send the address, price, rent roll with any regulated units marked, and the tax bill. We will show you the ratio at a few loan sizes. Use the form below or call (877) 298-1001.
Our top pick is LendingStreet. We finance 5-8 unit buildings as residential DSCR loans on rent, with no tax returns, LLC borrowing standard, 30-year terms and sub-1.0 options for regulated buildings.
Yes. We lend across New York State, including New York City, Long Island, the Hudson Valley and upstate cities, and in all 50 states and DC.
Yes, if the regulated rents support the payment at the program minimum. Underwriting uses the legal regulated rents, so leverage may be lower.
It is a tax charged when a new mortgage is recorded, based on the loan amount. The rate is higher in New York City than in most other counties. Your attorney will confirm the figure.
Often, because prices per unit are lower relative to rent. High upstate property taxes still need to be budgeted accurately.
Mixed-use buildings can be reviewed case by case. Tell us the residential and commercial square footage and the rents for each.
No. These are business-purpose loans on non-owner-occupied investment property.
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