Philadelphia's larger rental loans range from new-construction homes in Fishtown and Graduate Hospital to Rittenhouse rowhouses and Main Line single-family homes. A large-balance DSCR loan qualifies them on rent, but the city's tax abatement can change the math more than the rate does.
In short: Yes. LendingStreet finances Philadelphia-area rentals 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. On newer homes, the remaining years and structure of the property tax abatement matter, because taxes rise when it ends. Every Philadelphia rental also needs a city rental license, and many pre-1978 units need lead certification, so confirm both locally.
Large loans in the Philadelphia area fall into a few clear groups. These are general patterns only; values and rents vary block by block, so rely on recent leases and sales nearby.
Philadelphia has long offered a property tax abatement on new construction and qualifying improvements, generally running for 10 years. During the abatement, the owner pays tax mainly on the land and the pre-improvement value, so the tax bill on a new home can be very low.
The program was changed for newer applications. Abatements approved under the older rules generally kept the full benefit for the term, while newer residential abatements phase down year by year. Ask the seller for the abatement approval, the start year and which version applies, then confirm with the city's records.
For a DSCR loan, the tax figure is part of the payment. A home with two years of abatement left will carry a much higher bill soon after you close. Some lenders underwrite on the current bill, others look at the full future tax. Either way, you should run both numbers before you buy.
This example is illustrative and not a quote. An investor buys a newer single-family home in Fishtown for $1,100,000 and leases it at $7,000 a month. With the abatement, taxes are about $175 a month. Without it, taxes would be about $1,280 a month. Insurance is $225.
At 75% LTV the loan is $825,000 and the down payment is $275,000. At a sample rate of 7.25% on a 30-year fixed, principal and interest is about $5,628. With the abatement, the total payment is about $6,028 and DSCR is $7,000 divided by $6,028, or about 1.16x.
After the abatement ends, the total payment rises to about $7,133 and DSCR falls to about 0.98x, just under the 1.0x standard minimum. A larger down payment, a rent increase or a sub-1.0 program are the usual answers if the lender sizes on the full tax.
| Line item | With abatement | After abatement |
|---|---|---|
| Loan amount (75% LTV) | $825,000 | $825,000 |
| Principal and interest (7.25%, 30 years) | $5,628 | $5,628 |
| Property taxes | $175 | $1,280 |
| Insurance | $225 | $225 |
| Total monthly payment | $6,028 | $7,133 |
| Monthly rent | $7,000 | $7,000 |
| DSCR | About 1.16x | About 0.98x |
Philadelphia requires landlords to hold a rental license from the Department of Licenses and Inspections, along with a commercial activity license. Lenders and title companies may ask about it, and operating without one can create problems collecting rent. Treat it as a closing item, not an afterthought.
The city's lead ordinance requires lead-safe or lead-free certification for many rentals built before 1978. Much of the city's rowhouse stock is far older than that, so ask the seller for current certificates and budget for testing if they are missing.
Short-term rentals require their own licensing, and zoning limits investor-run nightly rentals in many residential areas. Most large Philadelphia DSCR loans qualify on annual leases. Confirm current rules with the city or a Philadelphia real estate attorney.
Philadelphia's combined city and state realty transfer tax is among the highest in the country, and buyer and seller customarily split it. On a seven-figure purchase that is a meaningful cash item on top of your down payment, and lenders verify funds for closing costs plus reserves.
Your title company will prepare the figures. Ask for them early so the reserve review does not come up short at the end.
Many Philadelphia investor loans fall between $500K and $1M. Typical examples are new-construction homes and duplexes in Fishtown, Kensington and Brewerytown, rowhouses in Graduate Hospital, Passyunk and Queen Village, condos in Center City and Old City, and twins in Manayunk, Roxborough and East Falls.
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.
The abatement question is most common at this size, since many new builds trade in this range. Run the ratio with the full tax bill as well as the abated one.
Above $1M, the 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. That is common on historic Society Hill or Rittenhouse homes and on Main Line estates with few close sales. In the suburbs, school district taxes make up most of the property tax bill, so pull the actual bill for the address.
Buildings with five or more units move to our multifamily programs, which are underwritten on net operating income.
The three most common large Philadelphia rentals each raise a different question. Use this table to plan, then confirm terms for the actual property.
| Item | New build with abatement | Historic Center City rowhouse | Main Line single-family |
|---|---|---|---|
| Main tax question | When the abatement ends | Current city assessment | School district taxes |
| Lead certification | Usually not needed | Often needed | Varies by township |
| Typical tenant | Young professionals | Professionals and medical staff | Families and executives |
| Appraisal focus | New-build comps | Condition and historic features | Few close sales on estates |
Many large Philadelphia requests are refinances. Investors who built or renovated in Fishtown, Kensington or Graduate Hospital often want to move out of short-term construction or bridge financing into a 30-year fixed DSCR loan, or pull equity for the next project.
A cash-out refinance goes up to 75% LTV, often lower on large balances. 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 with little or no seasoning, while others want several months of ownership or cap the loan at the purchase price plus documented improvements.
If the abatement is close to ending, the refinance is a good moment to run the ratio on the full tax bill. A rate-and-term refinance is also available if you only want to retire a maturing loan.
LendingStreet is an investment property financing company. We finance business-purpose DSCR loans on non-owner-occupied rentals in Philadelphia, the suburbs and across Pennsylvania.
Send the address, price, rent and target leverage, and tell us whether there is an abatement. The financing team will run the ratio on the tax figure the program uses and come back with 2-3 options, including cash-out or sub-1.0 structures where they fit.
Yes. DSCR loans start at $150,000 with no stated maximum. Loans of $500K to $1M are common for new builds in Fishtown and Brewerytown, rowhouses in Graduate Hospital and Passyunk, and Center City condos.
Taxes are part of the payment, so a low abated bill raises the ratio. When the abatement ends or phases down, the bill rises. Some lenders size on the current bill and others on the future one, so run both.
Yes. Landlords need a rental license from the Department of Licenses and Inspections and a commercial activity license. Confirm current requirements with the city.
Many rentals built before 1978 need lead-safe or lead-free certification under the city's lead ordinance. Ask the seller for certificates and confirm the current scope with the city.
Possibly, but Philadelphia requires licensing and zoning limits investor-run nightly rentals in many areas. Most large city loans qualify on annual leases. Confirm rules before you count on nightly income.
Yes. Main Line homes in towns like Bryn Mawr, Wayne and Villanova qualify on long-term rent like any single-family rental. Use the actual school and township tax bill in the ratio.
Our DSCR programs have no stated maximum. Larger balances are reviewed and priced case by case, often with lower maximum LTV and higher reserves.
Yes. A rate-and-term or cash-out refinance can qualify on the current lease. Cash-out goes up to 75% LTV, often lower on large balances, and seasoning varies by program.
No. LendingStreet finances non-owner-occupied investment property only.
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