In Connecticut, the line that most often sinks a large rental loan is the property tax bill. Town mill rates are high, and on a $2M Fairfield County home the taxes can run several times what the same house would pay in a low-tax state.
In short: LendingStreet offers jumbo DSCR loans of about $1.5M to $5M+ on high-value 1-8 unit rentals in Connecticut, qualified on the property's rent with no W-2s or tax returns. In Connecticut, jumbo balances come from Fairfield County homes in Greenwich, Westport, Darien and New Canaan, shoreline rentals from Madison to Old Saybrook, and 5-8 unit buildings in Stamford, Norwalk and New Haven. High town taxes, coastal flood insurance and the state and municipal conveyance taxes are the numbers to get right.
Fairfield County has the state's highest values. Greenwich, Darien, New Canaan, Westport and Fairfield have large homes that lease to New York commuters on the Metro-North New Haven Line, and Stamford and Norwalk have small multi-unit buildings near the train.
Along the shoreline, Guilford, Madison, Old Saybrook and Old Lyme have beach and waterfront homes rented by the season or year. New Haven has many three-family homes and small apartment buildings near Yale and the hospitals, and the Litchfield Hills have country homes with weekend rental demand.
| Area | What a jumbo balance usually buys | Main underwriting issue |
|---|---|---|
| Greenwich to Westport | Single-family home on a 12-month lease | Town taxes, few comparable leases |
| Stamford and Norwalk | 5-8 unit building near Metro-North | Combined rent, building condition |
| New Haven | Several multi-family buildings | Fair rent commission, older systems |
| Shoreline towns | Waterfront home rented seasonally | Flood zone, coastal insurance |
Connecticut towns fund schools and services mainly through property taxes, and each town sets its own mill rate. Some of the wealthiest towns have lower mill rates, but values are so high that the bill is still large, and many inland cities have high mill rates on lower values.
Run the ratio on the actual assessment and mill rate, not on a statewide average. On a large rental, a difference in town tax can move DSCR by a meaningful amount.
Connecticut assesses property at 70% of fair market value, and state law requires each town to revalue at least every five years. A town that recently revalued may show a very different bill than the seller paid. Ask the assessor's office when the next revaluation is scheduled.
The seller pays a state conveyance tax that steps up on higher price tiers, plus a municipal conveyance tax. It is a seller cost, but it matters when you plan an exit, and some sellers price it into their asking number.
Shoreline homes along Long Island Sound may fall in mapped flood zones where flood insurance is generally required, and storm surge from past hurricanes still shapes how insurers view the coast. In north-central and northeastern Connecticut, crumbling foundations caused by the mineral pyrrhotite have affected thousands of homes; ask for foundation testing records on older homes in that part of the state.
This example is illustrative and not a quote. An investor buys a Westport home for $2,100,000 that leases for $13,500 a month to a commuting family. Taxes are budgeted at $2,350 a month and insurance at $600.
At 70% LTV the loan is $1,470,000 and estimated principal and interest is about $10,028, for a total monthly payment of about $12,978 and a DSCR of about 1.04x. At 60% LTV the loan is $1,260,000, estimated principal and interest is about $8,595, the payment is about $11,545 and DSCR is about 1.17x.
At this price, the tax bill is about a sixth of the rent, which is why many Fairfield County investors borrow less than the program maximum.
| Item | 70% LTV | 60% LTV |
|---|---|---|
| Purchase price | $2,100,000 | $2,100,000 |
| Loan amount | $1,470,000 | $1,260,000 |
| Estimated principal and interest | $10,028 | $8,595 |
| Property taxes | $2,350 | $2,350 |
| Insurance | $600 | $600 |
| Total monthly payment | $12,978 | $11,545 |
| Monthly rent | $13,500 | $13,500 |
| DSCR | About 1.04x | About 1.17x |
Connecticut requires towns with 25,000 or more residents to have a fair rent commission that can hear tenant complaints about rent increases. That matters most for 5-8 unit buildings in Stamford, Norwalk, New Haven and Bridgeport, where rent growth assumptions should be realistic.
Short-term rental rules are set town by town; some shoreline and Litchfield County towns require registration or limit rentals in residential zones. Confirm current rules with the town before you count on nightly income.
A jumbo DSCR loan is the same rent-based loan investors use on smaller rentals, sized for higher-value property. The lender divides the monthly rent by the full housing payment: principal, interest, taxes, insurance and any HOA dues. The standard minimum is 1.0x, and sub-1.0 programs exist for some files.
What changes with size is the level of review. On larger balances, maximum LTV is often lower than the headline limits, reserve requirements are often higher and some programs ask for a second valuation. Exact limits vary by program.
Sometimes the better answer is a different structure. A blanket portfolio loan combines five or more rentals, each 1-8 units, under one loan with portfolio pricing and release provisions, and some programs allow properties in more than one state. A 5-8 unit building qualifies on combined rent and often shows stronger coverage than a single home at the same price.
If the ratio is close, a larger down payment or a sub-1.0 DSCR program may work. For 9+ unit buildings, see our commercial loans page.
These documents move a large file along:
Our investor loans are business-purpose loans on non-owner-occupied property. Tell us the address, price, rent and how much you want to borrow; the team will check coverage on realistic taxes and insurance and come back with options. Get a quote with the form below or call (877) 298-1001. For broader context, see our Connecticut DSCR loans page.
Usually property taxes. Mill rates are set by each town and can be high, so the tax line on a large home can take a big share of rent. Use the actual assessment and mill rate.
A town board that can review tenant complaints about rent increases. Connecticut requires one in towns with 25,000 or more residents, so it is worth knowing about on multi-unit buildings.
The seller pays the state and municipal conveyance taxes. Buyers still pay recording, title and lender costs.
DSCR programs have no stated maximum. Jumbo loans generally run from about $1.5M to $5M+, and larger balances get more review and often a lower maximum LTV.
Yes. Underwriting uses the property's rent instead of W-2s or tax returns. You will still need a 620 or higher credit score and proof of funds.
Yes. Most jumbo DSCR borrowers close in an LLC, and members typically sign for the loan personally.
No. Our investor loans are business-purpose loans on non-owner-occupied property, so the property must be a rental.
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