New York investors face a few costs and rules that most states do not have, starting with the mortgage recording tax. Knowing how they apply to a cash-out helps you size the loan and plan the closing.
In short: Yes, LendingStreet finances DSCR cash-out refinances on investment property in New York, up to 75% LTV, qualifying on the property's rent. That covers 1-4 unit rentals in New York City's outer boroughs, Long Island, the Hudson Valley and upstate cities like Buffalo, Rochester, Syracuse and Albany. New York's mortgage recording tax is a real closing cost on a cash-out, and a CEMA is commonly discussed as a way to limit it. Standard programs need 1.0x after the cash-out and a 620 credit score.
New York charges a mortgage recording tax when a new mortgage is recorded, and rates are higher in New York City and some surrounding counties than upstate. On a refinance, a Consolidation, Extension and Modification Agreement, or CEMA, is commonly discussed because it can let the existing mortgage be assigned to the new lender, so the tax may apply mainly to the new money rather than the full loan.
Not every lender or program can do a CEMA, the existing lender has to cooperate, and the savings depend on the numbers. Ask your title company or attorney for a side-by-side estimate with and without one, and confirm the final figures with them.
This example is illustrative and not a quote. An investor owns a three-family appraised at $420,000 with a $200,000 existing loan. The units rent for $3,900 a month combined. Taxes and insurance are $950 a month.
At 75% LTV the new loan is $315,000, leaving $115,000 after the payoff, before closing costs. At a sample rate of 7.25% on 30-year amortization, principal and interest is about $2,149, the total payment is about $3,099 and the DSCR is about 1.26x, above the 1.0x standard minimum. In this example the new money is $115,000, which is the portion a CEMA would aim to limit the recording tax to.
| Item | Amount |
|---|---|
| Appraised value | $420,000 |
| New loan at 75% LTV | $315,000 |
| Existing loan | $200,000 |
| New money before closing costs | $115,000 |
| Total monthly payment | About $3,099 |
| DSCR at $3,900 rent | About 1.26x |
In New York City, many older buildings with six or more units have rent-stabilized apartments, and state law limits how those rents can rise. For any property, lenders underwrite the legal rent the unit collects, not a hoped-for market rent.
Most 1-4 unit houses in the outer boroughs and upstate are not rent-stabilized, but confirm the status of any unit before you plan the loan around its rent. Some cities and towns outside New York City have adopted their own rent rules, so check locally.
Two- and three-family houses in Queens, Brooklyn, the Bronx and Staten Island hold large amounts of equity, though rents can be tight relative to value. Long Island and Westchester follow a similar pattern with high taxes.
Buffalo, Rochester, Syracuse and Albany have lower prices, older multi-unit housing and rents that often support the payment well. The Hudson Valley and Catskills mix long-term rentals with vacation homes; short-term rental programs can qualify on projected revenue where local rules allow it.
New York property taxes, especially on Long Island, in Westchester and in many upstate towns, can be high relative to value. Combined school, county and town bills all go into the monthly payment, so use the actual bills for each.
Older upstate buildings often have oil or older gas heat, porches and roofs that affect insurance. A current quote is better than an estimate.
Attorneys are commonly involved in New York real estate closings. With a CEMA, coordinating with the existing lender for the assignment can add time, so start that request early.
Your term sheet will list lender and closing costs. The recording tax and title charges come from your title company and attorney.
Gather these before you apply.
Yes. LendingStreet finances investment property in New York, including DSCR cash-out refinances up to 75% LTV on non-owner-occupied rentals, from $150,000.
Generally, yes, when a new mortgage is recorded. A CEMA can sometimes limit the tax mainly to the new money. Confirm the numbers with your title company or attorney.
No. It depends on the program and on the existing lender's cooperation. Ask about it at the start so it can be planned into the timeline.
The lender will use the legal regulated rent. That can produce a lower ratio, so size the loan around actual rents.
Yes. Buffalo, Rochester, Syracuse, Albany and other upstate markets qualify, subject to the $150,000 loan minimum and the program's property rules.
No. DSCR loans qualify on the property's rent. You need a 620 or higher credit score, reserves and entity documents if borrowing in an LLC.
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