In Scranton, a $1.5M rental loan does not buy a mansion. It refinances a dozen double-block houses, or a mix of homes and small buildings across Lackawanna and Luzerne counties. That is how jumbo financing works in this market.
In short: LendingStreet offers jumbo DSCR loans, about $1.5M to $5M+, to investors in Scranton, Dunmore, Wilkes-Barre, Clarks Summit and the surrounding area, qualified on rent rather than tax returns. Because rentals here are inexpensive, a jumbo balance nearly always means a portfolio of double-blocks, 2-4 unit houses and small 5-8 unit buildings, often under a blanket loan. Old assessments, local transfer taxes and mine subsidence are the regional issues to plan for.
Scranton's housing is dominated by early 1900s frame houses, including double-block homes, two side-by-side units under one roof, and stacked two- and three-family houses. Green Ridge and the Hill Section have larger homes near the University of Scranton and the hospitals, and Dunmore, Old Forge and Taylor add more of the same stock.
Clarks Summit and the Abingtons have higher-priced homes. To the south, Wilkes-Barre has a similar mix, and the Poconos and Lake Wallenpaupack, about an hour east, are a separate vacation-rental market.
| Area type | Examples | What a jumbo loan usually covers | Check first |
|---|---|---|---|
| Scranton core | Hill Section, Green Ridge, South Side, West Side | Groups of double-blocks and 2-4 unit houses | Condition, rental registration |
| Nearby boroughs | Dunmore, Old Forge, Taylor, Moosic | More double-blocks and small buildings | Local transfer tax, borough rules |
| Higher-value and lake | Clarks Summit, Lake Wallenpaupack | Occasional larger home or vacation rental | Rent support, township STR rules |
With double-blocks often selling for a small fraction of a jumbo balance, reaching $1.5M takes many properties. A blanket loan covering five or more rentals gives one closing and one payment, qualified on combined rent, with releases when you sell a building.
Rents in northeastern Pennsylvania are healthy compared with prices, so large portfolios often show strong coverage. Lenders focus on documentation and condition: leases, deposits, and the state of roofs, porches and heating systems on century-old houses.
Lackawanna County has gone decades without a countywide reassessment, so assessed values bear little resemblance to market value and tax bills vary widely between similar houses. Pennsylvania uses a common level ratio to compare assessed and market value on appeals, and taxing bodies can appeal after a sale. Pull the actual bill for each parcel.
Scranton's city and school millage is high relative to many neighbors. Pennsylvania charges a 1% state realty transfer tax and local bodies add their own, so ask your title company for the combined amount on each property.
This example is illustrative and not a quote. An investor owns 12 double-block houses, 24 units in all, across Scranton and Dunmore, with a combined value of $2,160,000. Combined rent is $27,600 a month. Taxes total $4,800 a month, and insurance, including mine subsidence coverage, is $1,600.
At 70% LTV the loan is $1,512,000. Estimated principal and interest is about $10,059 a month. Adding taxes of $4,800 and insurance of $1,600 brings the payment to about $16,459, and $27,600 of combined monthly rent puts the DSCR at about 1.68x.
Coverage this strong is common on Scranton portfolios, which is why investors here refinance to fund the next acquisitions.
| Line item | Portfolio refinance |
|---|---|
| Value | $2,160,000 |
| Loan-to-value | 70% |
| Loan amount | $1,512,000 |
| Estimated principal and interest | $10,059 |
| Property taxes | $4,800 |
| Insurance | $1,600 |
| Total monthly payment | $16,459 |
| Combined monthly rent | $27,600 |
| DSCR | About 1.68x |
Much of the Lackawanna Valley sits over old anthracite coal mines. Standard policies exclude mine subsidence, but Pennsylvania runs a state Mine Subsidence Insurance program, and coverage is inexpensive. Many investors carry it on every property in the valley.
Scranton and several nearby municipalities require rental registration, licensing or inspections; check each one for every property in the portfolio. Nearly all of this housing predates 1978, so lead disclosures apply. Homes near the Lackawanna River can sit in mapped flood zones.
The basics stay the same at any size: the loan qualifies on the property's rent, not your W-2s or tax returns, the minimum credit score is 620, LLC borrowers are standard and 30-year terms are available. What changes on a jumbo balance is the depth of review.
Maximum LTV is often lower than the 80% purchase and 75% cash-out ceilings that apply to smaller loans, reserve requirements are often higher, and some programs ask for a second appraisal or a desk review. All of it varies by program, so the right comparison is two or three structures side by side, not one headline number. Bring recent leases on similar Scranton rentals to support the rent the appraiser uses.
A jumbo-sized request in the Scranton market is often a refinance rather than a purchase. A cash-out refinance can reach 75% LTV on standard programs, subject to the rent covering the new payment, and seasoning rules vary by program.
If the balance comes from several properties, a blanket loan groups five or more rentals under one note with portfolio pricing. Buildings with 5 to 8 units stay residential and qualify on combined rent; anything with 9 or more units is a commercial loan instead. Mixing the two approaches across a large holding is common.
A clean package gets clearer terms. Have these ready when you reach out:
Send the address, value, rent and target loan amount, call (877) 298-1001, or use the form below. LendingStreet will run the ratio at a few loan sizes and come back with options. Our investor loans are business-purpose loans on non-owner-occupied property. For statewide rules and costs, see our Pennsylvania jumbo DSCR page.
Yes, usually as a portfolio. Single properties here are far below jumbo size, so a $1.5M+ balance typically covers many double-blocks and small buildings.
Coverage for damage from the ground settling over old coal mines. Standard policies exclude it, and Pennsylvania offers it through a state program at modest cost.
Lackawanna County assessments are decades old, so assessed values do not track market value evenly. Always check the actual bill for each parcel.
Usually one property with two units, financed as a 2-unit rental qualifying on the combined rent of both sides.
You can lower the loan amount, add rent, or look at a sub-1.0 DSCR program. Each changes the terms, so compare them side by side before you decide. Small changes to taxes or insurance can also move the ratio.
Yes. Buildings with 5 to 8 units are financed as residential and qualify on combined rent, though maximum LTV can be lower than on 1-4 units and varies by program. Nine or more units is a commercial loan.
Our DSCR programs have no stated maximum. Loans start at $150,000, and balances from about $1.5M to $5M+ are reviewed case by case, usually with lower maximum LTV and higher reserves than smaller loans. The rent still has to cover the full payment.
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.