Connecticut's rental market is built on older two-family and three-family houses, and property taxes vary a lot from town to town. The best DSCR lender is the one whose program handles both well.
In short: No single DSCR lender is best for every Connecticut property; compare programs on 2-4 unit eligibility, leverage, minimum ratio and how they count taxes. Older two-families and triple-deckers are common DSCR collateral in Hartford, New Haven, Bridgeport and Waterbury, and their multiple rents often support the payment well. High property taxes in some towns can offset that, so run every deal with the actual tax bill. LendingStreet finances investment property in Connecticut with DSCR rates from 6.125%, up to 80% LTV on purchases and LLC borrowing allowed.
LendingOne, Visio Lending, RCN Capital and Kiavi also write DSCR loans, as does LendingStreet. Their guidelines on older 2-4 unit buildings, condition, leverage and minimum ratio are not the same.
Ask two or three lenders for term sheets on the same property, with the same rents and the same tax figure. On older Connecticut stock, also ask how each program handles deferred maintenance found in the appraisal.
Many Connecticut cities have a large supply of two-family houses and three-story triple-deckers, often built in the early 1900s. Because two or three rents support one purchase price, these buildings frequently produce healthier ratios than a single-family home at the same price.
Age brings its own checks. Appraisers and lenders look at roof, heating, electrical and overall condition, and insurance on older multifamily can cost more. A building with major repairs needed may fit a bridge or fix and flip loan first, then a DSCR refinance once it is rent-ready.
Connecticut property taxes are set town by town, so two similar houses a few miles apart can carry very different tax bills. Some cities have notably high taxes relative to property values.
Lenders count the full tax bill in the payment. Pull the actual bill for the property, and if a revaluation or a new assessment is coming, ask the assessor's office or your attorney what to expect.
Hartford, New Haven, Bridgeport and Waterbury have deep supplies of 2-4 unit housing and lower entry prices than coastal Fairfield County. New Haven also has steady rental demand tied to its university and hospital employers.
Stamford sits in a higher-priced market with commuters to New York City, and more of its rental stock is condos and newer apartment buildings. Ratios there tend to be tighter, and buyers often put more money down.
This example is illustrative and not a quote. An investor buys a three-family house for $450,000. Each unit rents for $1,500, so gross rent is $4,500 a month. Property taxes are $1,100 a month and insurance is $300, for $1,400 in taxes and insurance.
At 80% LTV the loan is $360,000. At a sample rate of 7.125% on 30-year amortization, principal and interest is about $2,425. The total payment is about $3,825 and DSCR is about 1.18x. If the same building sat in a town with half the taxes, $550 a month, the payment would drop to about $3,275 and DSCR would rise to about 1.37x. The tax bill alone moves the ratio that much.
We offer DSCR rental loans that qualify on the property's rent, with no W-2s or tax returns. Rates start at 6.125% for well-qualified borrowers. Purchases go up to 80% LTV, cash-out refinances up to 75%, and the minimum credit score is 620, with better pricing at higher scores.
We finance single-family, 2-4 unit and 5+ unit rentals subject to program rules, and 30-year fixed options are available. Our financing team reviews the scenario and comes back with 2-3 options.
Gather leases for each unit, the current tax bill, an insurance quote, your LLC documents and bank statements for reserves. If units are vacant, a market rent estimate helps.
For older buildings, recent inspection reports or a list of updates such as roof, boiler or electrical work can help the file. Send what you have and we will tell you which programs fit.
Yes. LendingStreet finances investment property in Connecticut, including Hartford, New Haven, Bridgeport, Stamford and Waterbury. Loans are business-purpose on non-owner-occupied property, starting at $150,000.
It depends on the property. LendingOne, Visio Lending, RCN Capital, Kiavi and LendingStreet all write DSCR loans. Compare term sheets on the same building using the actual tax bill.
Yes. Triple-deckers are three-unit properties, which fall within 2-4 unit DSCR programs. Condition and insurance on older buildings get a close look.
Taxes are part of the monthly payment in the ratio. Because tax levels vary by town, the same rent can produce very different ratios depending on location.
Often yes. Many programs use market rent from the appraisal for vacant units, though some apply limits. Tell us the occupancy up front.
A bridge or fix and flip loan is often used first, followed by a DSCR refinance once the property is rented. We can review both steps together.
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