A two-family brownstone in Brooklyn, a condo in Manhattan, a colonial in Westchester. In New York, $1 million is a common starting price for a rental, and the financing has to match.
In short: LendingStreet finances $1M+ New York rentals with DSCR loans that qualify on the property's rent, not your personal income. Loans start at $150,000 with no stated maximum, and larger balances are reviewed and priced case by case, often with lower maximum LTV and higher reserves than smaller loans. In New York City, 2-4 family homes are often the easiest large-balance rentals to qualify because several rents support one price. Co-ops, rent-regulated units and short-term rental plans each need extra attention, so raise them early.
Most $1M+ DSCR requests in New York fall into a few groups. Each group has its own paperwork and its own approval questions.
In the city, investors buy two- to four-family homes and brownstones in Brooklyn neighborhoods like Park Slope, Bed-Stuy, Crown Heights and Bay Ridge, and in Queens areas like Astoria, Forest Hills and Long Island City. Manhattan rentals are more often condos. Outside the city, Westchester towns such as Scarsdale, Rye and New Rochelle, the North Shore of Long Island and the Hamptons have high-value single-family homes that rent to executives, families and seasonal tenants.
| Property type | Where it is common | What gets the closest look |
|---|---|---|
| 2-4 family home or brownstone | Brooklyn, Queens, parts of the Bronx | Leases, rent roll, certificate of occupancy, rent status |
| Condo unit | Manhattan, Long Island City, Downtown Brooklyn | Condo questionnaire, HOA dues, rental restrictions |
| Single-family rental | Westchester, Long Island, Hudson Valley | Property taxes, insurance, market rent support |
| Seasonal or vacation home | The Hamptons, Hudson Valley, Catskills | Local rental rules, how the income is documented |
| Co-op apartment | Manhattan and parts of Queens | Board approval; many investor programs do not finance co-ops |
DSCR is the property's monthly rent divided by its full monthly payment, including principal, interest, property taxes, insurance and any condo or HOA charges. A 1.0x ratio means the rent covers the payment. That is the standard minimum, though some programs go lower and some offer no-ratio options.
On a large balance, the loan payment dominates the math. That is why a two-family home with two rents often qualifies more easily than a single condo at the same price. It is also why many New York investors put down more than the minimum. LendingStreet's purchase loans go up to 80% LTV and cash-out refinances up to 75%, but on large balances the maximum is often lower and varies by program.
Some programs require a second appraisal or a more detailed review above certain loan sizes. Build a little extra time into your contract if your loan is well into seven figures.
This example is illustrative and not a quote. An investor buys a two-family home in Brooklyn for $1,600,000. The two units together rent for $9,800 a month. Property taxes and insurance come to about $1,100 a month.
At 70% LTV, the loan is $1,120,000 and the down payment is $480,000. At a sample rate of 7.125% on a 30-year fixed, principal and interest is about $7,546. Add $1,100 for taxes and insurance and the total payment is about $8,646. DSCR is $9,800 divided by $8,646, or about 1.13x, comfortably above the 1.0x standard minimum.
If one unit were vacant at closing, the lender would usually use market rent from the appraisal for that unit. A signed lease on both units makes the file stronger.
New York City has a large stock of rent-stabilized apartments. Stabilization generally applies to certain older buildings with six or more units, so many 1-4 family homes fall outside it, but there are exceptions and the history of each unit matters. If a unit is regulated, its legal rent is what counts, not what the market might pay.
State tenant protection laws also limit how and when rents can change and how tenants can be removed. Before you buy a tenant-occupied building, ask your attorney to confirm the rent status of each unit and review the leases. A lender will use the rent the unit can legally collect.
Condos can be financed with DSCR loans, and they are common among Manhattan and Long Island City rentals. The building is reviewed along with the unit. Expect questions about the condo's budget, reserves, insurance, any litigation, owner-occupancy and rules on renting units. Common charges and any assessments go into the payment.
Co-ops are different. A co-op buyer owns shares in a corporation, not real property, and boards often limit subletting. Many investor DSCR programs do not finance co-ops at all. If you are looking at a co-op as a rental, ask before you sign a contract.
New York City tightly restricts short-term rentals. Rentals of under 30 days generally require registration, and the rules make most whole-unit short-term rentals impractical for investors. For city properties, plan on long-term leases or stays of 30 days or more.
Outside the city, the rules are set town by town. Some East End towns on Long Island and parts of the Hudson Valley and Catskills require rental permits or registrations and set minimum stays. If you want to qualify a seasonal or vacation home on projected STR revenue, confirm the local rules first. STR DSCR rates start at 6.49% for qualified borrowers.
New York has some closing costs that buyers from other states do not expect. The state charges an additional transfer tax, often called the mansion tax, on many residential purchases at $1 million and above, and mortgage recording tax applies to most loans. New York City adds its own transfer and recording taxes. Your attorney can tell you how each applies to your deal.
Property taxes vary widely. New York City taxes small residential buildings differently from larger ones, and suburban counties like Westchester and Nassau are known for high property tax bills. Use the actual tax bill or a reliable estimate in your ratio, since taxes go straight into the payment. Attorneys typically handle closings in New York, so build that into your timeline.
Many large New York DSCR requests are refinances, not purchases. Owners who bought a brownstone or two-family years ago often have significant equity and want to use it for the next purchase, a renovation or to pay off other investment debt.
A cash-out refinance goes up to 75% LTV. The rent is measured against the new, larger payment, so taking more cash lowers the ratio, and the result must still clear the program minimum. Seasoning varies by program: some allow cash-out soon after purchase, while others want several months of ownership or cap the loan at the purchase price plus documented improvements.
A rate-and-term refinance is also available if you only want to replace a maturing loan or move out of short-term financing. In both cases, current leases and a clean rent history help the appraisal support the rent you need.
Rates start at 6.125% for well-qualified DSCR borrowers and larger balances are priced case by case. The minimum credit score is 620, with better pricing at higher scores. No W-2s or tax returns are required, LLC borrowers are allowed and 30-year fixed options are available.
Our financing team reviews the property, the rent and your reserves, then comes back with 2-3 options. On a large New York loan, that often means comparing a higher-leverage option against a lower-leverage one with a stronger ratio.
Across the state, many investor loans fall between $500K and $1M. Examples include two-families in Yonkers, New Rochelle and Mount Vernon, single-family and two-family homes in Nassau and Suffolk counties, Hudson Valley rentals around Beacon, Kingston and Poughkeepsie, and condos and 2-4 family homes in Queens and Staten Island.
On these balances, leverage often sits closer to the program maximums of 80% LTV for purchases and 75% for 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 are unchanged.
Rent regulation, high property taxes on Long Island and in Westchester, and the mortgage recording tax still shape these files at a smaller balance.
A complete file moves faster at any loan size, and more so on large balances where a second appraisal or detailed review may apply. Send these with your scenario.
Yes. LendingStreet finances investment property in New York, including 2-4 family homes, condos and single-family rentals above $1 million in New York City and the suburbs. Loans start at $150,000 with no stated maximum.
Usually not. Many investor DSCR programs do not finance co-ops because the buyer owns shares rather than real property and boards often restrict subletting. Condos are generally financeable.
The lender generally counts only the units shown on the certificate of occupancy. An extra unit that is not legal is usually not counted toward rent and can create other problems in underwriting.
In most cases, no. New York City tightly restricts rentals under 30 days. For city properties, plan to qualify on long-term rent.
Often. Maximum LTV on large balances is frequently lower than the 80% available on smaller purchases, and the ratio may need more equity to clear 1.0x. The exact limit varies by program.
Yes, at their legal regulated rent, not market rent. Have your attorney confirm each unit's status before you buy.
No. DSCR loans qualify on the property's rent. You will still need a 620 or higher credit score, reserves and entity documents if you borrow through an LLC.
Yes. Cash-out refinances go up to 75% LTV, and the rent must still cover the new payment at the program's minimum ratio.
Yes. DSCR loans start at $150,000 with no stated maximum, and $500K to $1M loans are common for Westchester and Long Island houses, Hudson Valley rentals, and 2-4 family homes in Queens and Staten Island.
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.