Long Island rentals range from commuter homes on the North Shore to waterfront houses on the South Shore and summer rentals in the Hamptons. A large-balance DSCR loan qualifies them on rent, but on Long Island the property tax bill often decides how much you can borrow.
In short: Yes. LendingStreet finances Long Island rentals in Nassau and Suffolk counties from $500K to well over $1M with DSCR loans that qualify on the property's rent, with no W-2s or tax returns. Loans start at $150,000 with no stated maximum, rates start at 6.125% for well-qualified borrowers, and purchases go up to 80% LTV, often less on large balances. High property taxes are the usual reason a Long Island rental needs more equity, so pull the actual bill early. East End towns require rental registration and limit short stays, and South Shore homes often need flood coverage, so confirm both locally.
Large-balance requests come from every part of the island, and each area has its own tenant base and its own risks. These are general patterns; rents and values vary by street and school district, so use recent leases and sales nearby.
Commuting time to Manhattan, the school district and distance to the water drive most rents. Since the Long Island Rail Road began running to Grand Central Madison, some renters weigh East Side access as well as Penn Station.
Long Island property taxes are among the highest in the country, driven mostly by school district taxes. On a DSCR loan, taxes are part of the payment, so a home with a very high bill can need noticeably more equity than a similar home with a lower one.
Owner-occupants may receive the STAR benefit and other exemptions that investors cannot claim. If the seller lived in the home, your bill may change after the sale. Many Long Island owners also file tax grievances, so the current bill may reflect a past reduction.
Use the full current bill, without owner exemptions, when you run the ratio. Ask whether a grievance is pending or was recently decided.
This example is illustrative and not a quote. An investor buys a single-family home on Nassau's North Shore for $1,450,000 and leases it at $8,900 a month. Taxes are about $2,100 a month and insurance $325, for $2,425 combined.
At 70% LTV the loan is $1,015,000 and the down payment is $435,000. At a sample rate of 7.25% on a 30-year fixed, principal and interest is about $6,924. The total payment is about $9,349, and DSCR is $8,900 divided by $9,349, or about 0.95x, below the 1.0x standard minimum.
At 60% LTV the loan is $870,000, principal and interest is about $5,935 and the total payment is about $8,360. DSCR rises to about 1.06x. The tax bill, not the rate, is what pushed this deal to a larger down payment. A sub-1.0 DSCR program is another option at the higher leverage.
| Line item | 70% LTV | 60% LTV |
|---|---|---|
| Loan amount | $1,015,000 | $870,000 |
| Down payment | $435,000 | $580,000 |
| Principal and interest (7.25%, 30 years) | $6,924 | $5,935 |
| Taxes and insurance | $2,425 | $2,425 |
| Total monthly payment | $9,349 | $8,360 |
| Monthly rent | $8,900 | $8,900 |
| DSCR | About 0.95x | About 1.06x |
Many East End homes earn most of their income from a single summer, often a Memorial Day to Labor Day lease or a series of monthly rentals. That income is real, but it does not fit the monthly-lease math most DSCR programs start with.
Programs differ. Many use the appraiser's long-term market rent. Some consider documented seasonal income averaged over the year, and short stays may qualify on projected revenue under an STR program, with rates from 6.49% for qualified borrowers. Which method applies varies by program.
Southampton, East Hampton and other East End towns require rental registration or permits and limit very short stays. Confirm the rules for the town and village before you count on any income other than an annual lease, and keep the rental history with dates and amounts.
Hurricane Sandy in 2012 flooded large parts of the South Shore, from Long Beach and Island Park to Freeport, Lindenhurst and the bay communities. Many homes were raised or rebuilt afterward, and much of the area sits in mapped flood zones.
Flood insurance is generally required in special flood hazard areas, and the premium counts in the DSCR payment. A raised home with an elevation certificate can price very differently from a home at grade on the same block. Get quotes during your contract period.
New York charges a mansion tax on many residential purchases of $1 million and up, and mortgage recording tax applies to most loans. The five East End towns also collect a community preservation fund transfer tax, generally paid by the buyer, on purchases above set thresholds.
Lenders verify funds for closing costs plus reserves, so ask your attorney for the figures early. Attorneys handle most Long Island closings.
Many Long Island investor loans fall between $500K and $1M. Common examples are single-family rentals in Hicksville, Levittown, Bethpage and Merrick, legal two-family homes in Nassau and western Suffolk, homes in Patchogue, Bay Shore and Smithtown, and condos and smaller homes on the North Fork.
On these balances, leverage often sits closer to the program maximums of 80% LTV on purchases and 75% on cash-out, and reserves are often lighter than on $1M+ loans. Both vary by program, and the 1.0x standard minimum DSCR and 620 credit floor stay the same.
Taxes still drive the ratio at this size. On a legal two-family, confirm the certificate of occupancy, since an accessory apartment without permits usually gets no rent credit.
Above $1M, the program basics stay the same: qualify on the property, no W-2s or tax returns, a 620 minimum credit score, LLC borrowers allowed and 30-year fixed options. Larger balances are priced case by case, maximum LTV is often lower and reserve requirements are often higher.
Some programs require a second appraisal or a more detailed review, which is common for waterfront and East End estates with few close sales. Co-ops, found in some Nassau communities, are generally not financed with investor DSCR loans; condos can be if the building passes review.
| Item | North Shore home | South Shore waterfront | Hamptons summer rental |
|---|---|---|---|
| Main cost driver | School district taxes | Flood insurance | Taxes and seasonal vacancy |
| Typical qualifying income | Annual lease | Annual lease | Varies by program |
| Local rule to check | Tax grievance history | Flood zone and elevation | Town rental registration |
| Tenant base | Commuters and families | Year-round and summer renters | Summer visitors |
Many Long Island owners bought years ago and now hold significant equity. A cash-out refinance can fund the next purchase, a renovation or the payoff of other investment property debt, and a rate-and-term refinance can retire a maturing loan.
Cash-out goes up to 75% LTV, often lower on large balances. Because the rent is measured against the new, larger payment, more cash means a lower ratio, and with Long Island taxes that ratio can tighten quickly. Seasoning varies by program: some allow cash-out with little or no seasoning, while others want several months of ownership or cap the loan at the purchase price plus documented improvements.
Run the refinance at two or three loan amounts before you decide how much cash to take. The financing team can show where each one lands against the program minimum.
Send the address, price, rent type and target leverage. The financing team will run the ratio at a few loan amounts and come back with 2-3 options.
Yes. DSCR loans start at $150,000 with no stated maximum. Loans of $500K to $1M are common for single-family rentals in Levittown, Hicksville and Merrick, legal two-families in Nassau and western Suffolk, and North Fork homes.
High property taxes raise the monthly payment, which lowers the DSCR. A larger down payment reduces the loan payment so the rent covers the total. A sub-1.0 program is another option.
Yes, but how summer income counts varies by program. Many use long-term market rent. Bring the rental history and confirm the town's registration rules.
Yes. Southampton, East Hampton and other towns require rental registration or permits and limit very short stays. Check current rules for the town and village.
It is generally required in FEMA special flood hazard areas, which cover much of the South Shore. The premium counts in the DSCR payment.
They may. STAR and other exemptions are for owner-occupants. Underwrite with the bill you will pay as an investor.
Our DSCR programs have no stated maximum. Larger balances are reviewed and priced case by case, often with lower maximum LTV and higher reserves.
No. LendingStreet finances non-owner-occupied investment property only, so homes with personal use do not qualify.
Yes. Cash-out goes up to 75% LTV, often lower on large balances. The rent must cover the new payment at the program minimum, and seasoning varies by program.
2-3 competing quotes from 30+ capital sources. No credit pull. No commitment.
By clicking, you provide express written consent to be contacted by LendingStreet (NMLS #1734316) via SMS, phone, or email, possibly using automated technology, regarding your loan inquiry. Reply STOP to opt out. Consent is not required to obtain services. See our Privacy Policy and Terms.