The Lehigh Valley is a rowhome and twin market with a growing commuter base from New Jersey and New York. Large rental loans here usually come from small apartment buildings in the downtowns or a portfolio of rowhomes, not a single luxury house.
In short: LendingStreet offers jumbo DSCR loans from about $1.5M to $5M+ for Lehigh Valley investors, qualified on rent with no W-2s or tax returns. In Allentown, Bethlehem and Easton, those balances usually mean a 5 to 8 unit building, a portfolio of rowhomes and twins, or a high-value home in Saucon Valley or Lower Macungie. Pennsylvania's transfer taxes and each city's rental licensing rules shape the cost of every deal.
Allentown's West End and the Old Allentown and Old Fairgrounds historic areas have large brick rowhomes and twins, some converted into multiple units. Bethlehem's historic north and south sides, near Lehigh University and Moravian University, and College Hill in Easton near Lafayette College add student and young-professional rentals.
Higher-value single-family homes are in Lower Saucon, Upper Saucon (Center Valley), Lower Macungie, Emmaus and parts of Upper Milford. Warehouse and distribution jobs along the I-78 and Route 22 corridors, plus commuters to New Jersey, keep rental demand broad.
| Jumbo scenario | Where | Watch for |
|---|---|---|
| Portfolio of rowhomes and twins | Allentown West End, Bethlehem South Side, Easton | Rental licenses and inspections on each unit |
| 5 to 8 unit conversion | Old Allentown, Bethlehem historic districts, College Hill | Legal unit count, fire separation, historic review |
| Large suburban home | Saucon Valley, Center Valley, Lower Macungie | School district taxes and thin rental comparables |
Think of a jumbo DSCR loan as the same rent-based loan investors already use, sized for higher-value property. LendingStreet offers these from about $1.5M up to $5M+ on 1 to 8 unit rentals, for purchase, rate-and-term or cash-out.
There are no W-2s or tax returns. The lender divides rent by the full housing payment and generally looks for 1.0x or more, with sub-1.0 programs for some files. A 620 credit score is the floor, LLC ownership is normal and 30-year terms are available. Expect leverage below the 80% purchase and 75% cash-out maximums on the largest loans, since it varies by program.
Pennsylvania charges a 1% state realty transfer tax, and local municipalities and school districts add their own, so the combined amount differs between Allentown, Bethlehem, Easton and the suburbs. Buyers and sellers often split it by custom, but your contract controls. Ask the title company for the exact combined figure.
Lehigh and Northampton counties do not reassess on a fixed cycle, so assessments can trail market value by years. Your bill depends on the assessed value times county, municipal and school district millage, and school taxes are usually the biggest piece. Pull the actual bill rather than estimating from the price.
This example is illustrative and not a quote. Here is how the 5 to 8 unit building works at two loan sizes. An investor buys a renovated eight-unit building in Bethlehem for $2,000,000, with separately metered electric and a mix of one- and two-bedroom units. It rents for $13,600 a month. Taxes are budgeted at $1,700 a month, insurance at $800.
At 75% LTV the loan is $1,500,000 and estimated principal and interest is about $10,360, for a total payment of about $12,860 and a DSCR of about 1.06x. At 65% LTV the loan is $1,300,000, estimated principal and interest is about $8,979, the payment is about $11,479 and DSCR is about 1.18x.
Converted buildings need the unit count to match the city's records and rental licenses. If the building is licensed for fewer units than it has, underwriting will use the legal count.
| Item | 75% LTV | 65% LTV |
|---|---|---|
| Loan amount | $1,500,000 | $1,300,000 |
| Estimated principal and interest | $10,360 | $8,979 |
| Property taxes | $1,700 | $1,700 |
| Insurance | $800 | $800 |
| Total monthly payment | $12,860 | $11,479 |
| Monthly rent | $13,600 | $13,600 |
| DSCR | About 1.06x | About 1.18x |
Much of the Lehigh Valley's rental stock is a century old or more: brick party walls, slate or flat roofs, knob-and-tube remnants and steam heat. Insurers want updated electrical and heating details, and conversions need proper fire separation between units. Pre-1978 buildings carry federal lead-based paint disclosure duties.
Allentown and Bethlehem both run rental licensing or registration programs with inspections, and Easton has its own requirements. A building without current licenses can delay closing or leave you unable to lease units until they pass. Check each city's current rules and fees before you sign.
Short-term rentals are a small part of this market and are regulated locally. Most jumbo files here are underwritten on 12-month leases.
Single homes above $1.5M are scarce in the Lehigh Valley. Here, jumbo usually means a small multi-unit building or a portfolio of rowhomes and twins.
Large balances get more scrutiny. Reserve requirements are often higher, the appraisal review is more detailed and some programs ask for a second appraisal. Comparable sales and comparable leases can be thin at the top of a market, so be ready to support both value and rent.
If the ratio comes up short, the usual fixes are a larger down payment, a different loan amount or a sub-1.0 DSCR program where one fits.
On a cash-out refinance, maximum LTV is up to 75% and often lower on a big balance, and how long you must own the property first varies by program. Rate-and-term refinances can go up to 80% LTV on some programs.
Having these ready shortens the back-and-forth.
Our investor loans are business-purpose loans on non-owner-occupied property. The Pennsylvania jumbo DSCR page covers statewide issues, and the Allentown DSCR page covers smaller loans.
Share the address, the rent roll or lease, the value and your target loan amount. LendingStreet will size the loan against realistic carrying costs and show how coverage changes with leverage. Get a quote through the form below or call (877) 298-1001.
It is commonly split between buyer and seller, but the contract decides. The combined state and local amount varies by municipality, so get the exact figure from your title company.
No stated cap. Jumbo DSCR loans generally start around $1.5M and go to $5M+, and the bigger the balance, the more review and the lower the typical maximum LTV.
Allentown requires rental units to be licensed and inspected, and Bethlehem and Easton have their own programs. Confirm current rules with each city before closing.
No. DSCR underwriting uses the property's rent instead of personal income. Expect a credit check with a 620 minimum and verification of reserves and down payment funds.
Lehigh and Northampton counties reassess infrequently, so assessed values often lag the market. Taxes are based on the assessed value times local millage.
Yes. LLC borrowers are standard. You will usually sign for the loan personally as well, and we will ask for the LLC's formation documents and operating agreement.
No. Our investor loans are business-purpose loans on non-owner-occupied property, so the property must be a rental, not a home you occupy.
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