New York is two rental markets in one state: high-priced New York City and lower-priced upstate cities where small multifamily is common. The best DSCR lender is the one whose program fits the market you are buying in.
In short: There is no single best DSCR lender in New York; the right one is the program that fits your property type, location and numbers. Compare rate, leverage, minimum DSCR, credit floor and which property types the lender accepts, since co-ops are generally not financed with DSCR loans and some lenders limit NYC condos. Several national lenders write DSCR loans in the state, and LendingStreet finances investment property in New York with rates from 6.125%, up to 80% LTV on purchases and LLC borrowing allowed. Upstate, high property taxes often decide the ratio; in the city, purchase price usually does.
Kiavi, Visio Lending, LendingOne, CoreVest, Angel Oak, Griffin Funding and RCN Capital also write DSCR loans, and each is a legitimate option. Their guidelines on condos, 2-4 unit buildings, 5+ unit properties and leverage differ.
Instead of searching for one winner, get comparable term sheets on the same property. In New York especially, property type eligibility narrows the field before rate even comes up.
Line up the offers on the same terms: same loan amount, same rent, same expenses. Then check the items that most often separate New York deals.
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 and cash-out refinances up to 75%. The minimum credit score is 620 and 30-year fixed options are available.
The standard minimum ratio is 1.0x, with some programs below 1.0 and no-ratio options. We finance single-family, 2-4 unit, condo and 5+ unit rentals subject to program rules. Our financing team reviews the scenario and comes back with 2-3 options.
In New York City, high prices mean ratios are usually tight, and many buyers put more equity down to make the numbers work. Co-ops make up a large share of city apartments, but they are generally not financed with DSCR loans because the buyer owns shares, not real property. Condos and small multifamily buildings are the more common DSCR targets. The city also strictly limits rentals under 30 days, so most NYC deals are underwritten on long-term rent.
Upstate, Buffalo, Rochester, Syracuse and Albany offer lower entry prices and plenty of two- and three-family houses. Rent-to-price is often stronger there, but property and school taxes can be high relative to value, so they take a big bite out of the ratio.
Taxes are the first thing to check. Use the actual tax bill, including school taxes, and expect lenders to count it in full. Insurance on older multifamily buildings can also run higher than on newer single-family homes.
Rent regulation exists in New York City and some other parts of the state. A rent-stabilized unit may have a legal rent below market, which caps the income a lender can count, so confirm a building's status before you underwrite. New York also charges a mortgage recording tax that varies by location and loan size; your title company can confirm the amount.
This example is illustrative and not a quote. An investor buys a two-family house in an upstate city for $360,000. Each unit rents for $1,550, so gross rent is $3,100 a month. Property taxes, including school taxes, plus insurance come to $780 a month.
At 75% LTV the loan is $270,000. At a sample rate of 7.375% on 30-year amortization, principal and interest is about $1,865. The total payment is about $2,645 and DSCR is about 1.17x, above the 1.0x standard minimum. Taxes and insurance make up nearly 30% of that payment, which is why upstate investors check the tax bill first.
Gather leases for every unit, the current tax bill, an insurance quote, your LLC documents and bank statements for reserves. For a condo, request the association's questionnaire and budget.
If any unit may be rent regulated, have the registration history or ask your attorney to confirm its status. Sending those details early helps our financing team tell you which programs fit.
Yes. LendingStreet finances investment property in New York, both in New York City and upstate. Loans are business-purpose on non-owner-occupied property, starting at $150,000.
No one lender fits every deal. Kiavi, Visio Lending, LendingOne, CoreVest, Angel Oak, Griffin Funding, RCN Capital and LendingStreet all write DSCR loans. Compare term sheets on the same property.
Generally no. Co-op buyers own shares in a corporation rather than real property, and DSCR programs typically finance real property. Condos and 1-4 unit houses are more common DSCR collateral.
A regulated unit's legal rent may be below market, and lenders generally count the legal rent. That can lower the ratio. Confirm each unit's status before you make an offer.
Many investors find upstate rent-to-price ratios workable, especially on two- and three-family houses. High property taxes can offset that, so run the ratio with the full tax bill.
Yes, some programs finance 5+ unit rentals on the property's income. Terms vary by program and building.
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