In New York City, a two-family house in Brooklyn or Queens can cost well over $1 million, and so can a one-bedroom condo in Manhattan. A large-balance DSCR loan can finance either one, but co-ops, rent rules and NYC closing costs all shape the deal.
In short: LendingStreet finances $1M+ NYC rentals with DSCR loans that qualify on the property's rent, with no W-2s or tax returns. The best fit is usually a 1-4 family house in the outer boroughs or a condo unit in a building that passes project review; co-ops are generally not financeable with a DSCR loan because you own shares, not real property. 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. Budget separately for New York's buyer-side taxes, which can add meaningfully to cash to close on a seven-figure purchase.
New York's housing stock is unusual, and the ownership type matters as much as the price. Here is how the common options line up for an investor.
| Property type | DSCR fit | Notes |
|---|---|---|
| 1-family house | Yes | Often hard to cash flow at high prices on one rent |
| 2-4 family house | Yes, the most common large-balance NYC rental | Brownstones, rowhouses and detached multi-family homes |
| Condo unit | Yes, subject to building review | HOA (common charges), rental share and litigation reviewed |
| Co-op apartment | Generally no | You own shares in a corporation; boards often limit subletting |
| 5+ unit building | Multifamily program | Underwritten on net operating income, not a simple DSCR |
| Mixed-use with a storefront | Commercial program | Custom terms; property must be cash flow positive |
Most large-balance NYC DSCR files are two- and three-family houses outside Manhattan. In Brooklyn, investors look at brownstone and rowhouse blocks in Bed-Stuy, Crown Heights, Park Slope, Bushwick and Bay Ridge. In Queens, it is two-family homes in Astoria, Ridgewood, Jackson Heights, Forest Hills and Flushing.
Staten Island has many detached two-family homes on larger lots, and parts of the Bronx, such as Riverdale and the East Bronx, have two- and three-family houses as well. Each neighborhood has its own rent levels, so lean on recent signed leases, not asking rents, when you estimate the ratio.
One local tax detail: 1-3 family homes generally fall in property tax class 1, while residential buildings with four or more units are generally class 2 and taxed differently. Pull the Department of Finance notice of property value rather than guessing.
Manhattan and parts of Brooklyn and Queens have plenty of condos priced above $1 million. A condo is real property, so it can be financed with a DSCR loan if the building passes the lender's review of its budget, reserves, litigation, rental share and owner concentration. Common charges and real estate taxes on the unit both count in the payment.
Co-ops are different. Buyers own shares and a proprietary lease, boards approve buyers and often restrict subletting, and most investment property programs, ours included, do not finance them on a DSCR basis. If a listing is a co-op, it is usually not the right fit for an investor loan.
Condos that fail a standard review, such as buildings with a sponsor holding many unsold units or with significant litigation, may still qualify on a non-warrantable condo program, often at lower leverage.
Rent stabilization in New York City generally applies to buildings with six or more units built before 1974, so most 1-4 family houses are not stabilized. Some are, often through past tax benefit programs. Ask the seller for the state housing agency's rent history and have your attorney confirm the status, because a stabilized unit's legal rent is what the lender will use.
New York's Good Cause Eviction law, passed in 2024, adds rent increase and eviction rules to many NYC rentals. Exemptions depend on factors such as how many units the owner holds and the building's age. Confirm with counsel whether it applies to your property.
Short-term rentals are tightly limited. Under the city's registration law, renting a whole home for fewer than 30 days is generally not allowed, and hosts must register even for permitted stays. Plan on long-term rent for an NYC investment property.
Cash to close in New York is not just the down payment. On a seven-figure purchase, several taxes and charges add up, and lenders verify that you have funds for all of them plus reserves.
Confirm current amounts with your attorney and title company, who prepare the closing figures in New York.
This example is illustrative and not a quote. An investor buys a two-family house in Queens for $1,350,000. Both units are vacant at closing, and the appraiser estimates combined market rent of $8,800 a month. Taxes are budgeted at $1,100 a month and insurance at $250.
At 75% LTV the loan is $1,012,500. At a sample rate of 7.25% on a 30-year fixed, principal and interest is about $6,907. The total payment is about $8,257, and DSCR is $8,800 divided by $8,257, or about 1.07x.
If the program caps this balance at 70% LTV, the loan is $945,000, principal and interest is about $6,447 and the total payment is about $7,797. DSCR rises to about 1.13x, but the investor brings $67,500 more to closing, before the mansion tax, recording tax and other costs.
| Item | 75% LTV | 70% LTV |
|---|---|---|
| Loan amount | $1,012,500 | $945,000 |
| Down payment | $337,500 | $405,000 |
| Principal and interest | $6,907 | $6,447 |
| Taxes and insurance | $1,350 | $1,350 |
| Total monthly payment | $8,257 | $7,797 |
| DSCR at $8,800 rent | About 1.07x | About 1.13x |
New York closings run through attorneys, and contract terms differ from many states. Buyers often sign a contract with a mortgage contingency and a set commitment date, so share that date with the financing team at the start.
On larger balances, some programs require a second appraisal or a more detailed review, and reserve requirements are often higher. Condo deals also need the building's questionnaire and financials, which management companies can take time to deliver. Order them early.
If you are buying an occupied two- or three-family house, ask for tenant estoppels or lease confirmations early, since NYC tenants and sellers do not always have formal written leases. Units with no written lease or with a family member as occupant may be treated as vacant for underwriting, which means the appraiser's market rent applies instead.
Outer-borough multi-family homes often come with existing tenants, older systems and a long ownership history. A few steps make a large file easier to approve and price.
Most of these cost little and save time later, when the commitment date in your contract is getting close.
In the five boroughs, $500K to $1M loans are common for two-family homes in Staten Island, the Bronx and eastern Queens neighborhoods like Jamaica, Queens Village and Ozone Park, two-families in Canarsie, Flatlands and East New York, and condo units in Long Island City, Downtown Brooklyn and Upper Manhattan.
These loans are often closer to standard program terms: leverage nearer the 80% LTV purchase and 75% cash-out maximums, and reserve requirements that are often lighter than on $1M+ balances. Both vary by program, and the 1.0x standard minimum DSCR still applies.
The NYC checks do not change with loan size. Co-ops are still generally harder to finance with an investor loan than condos, and rent-stabilized units are still underwritten on the regulated rent, not market rent.
A clean file helps on a large NYC loan, where many people touch the transaction.
LendingStreet is an investment property financing company. Our DSCR loans are business-purpose loans for non-owner-occupied rentals, with a 620 minimum credit score, LLC borrowers allowed, 30-year fixed options and up to 75% LTV on cash-out, often lower on large balances.
Send the address, ownership type, unit count, rents and your target leverage. The financing team will check the ratio at a few loan amounts and come back with 2-3 options.
Generally no. Co-op buyers own shares, not real property, and boards often restrict renting. Our DSCR programs finance houses and condos, not co-op shares.
Yes, if the building passes project review. Common charges and taxes count in the payment, which often makes Manhattan condos harder to qualify than outer-borough multi-family homes.
Yes. 1-4 unit residential properties are core DSCR property types. Confirm the legal unit count on the certificate of occupancy. A third unit that exists in practice but not on paper usually cannot be counted toward the rent.
New York's mansion tax applies to residential purchases of $1 million and up, and it is not limited to homes the buyer lives in. Your attorney will confirm the amount.
Whole-home rentals under 30 days are generally not allowed under the city's rules, so NYC investment properties are usually financed on long-term rent.
Yes. Cash-out goes up to 75% LTV, often lower on large balances, and the rent must still cover the new payment at the program minimum. Rate-and-term refinances are also available.
The lender will generally use the legal regulated rent, not market rent. Get the rent history and have your attorney confirm the status before you set your price.
No stated maximum. Loans start at $150,000, and larger balances are reviewed and priced case by case. Strong credit, solid reserves and experience owning rentals all help on a large NYC loan.
Not with our programs. LendingStreet finances non-owner-occupied investment property only.
Yes. DSCR loans start at $150,000 with no stated maximum, and $500K to $1M loans are common for two-family homes in Staten Island, the Bronx and eastern Queens and for condo units in Long Island City and Downtown Brooklyn.
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