Westchester renters pay for two things: a Metro-North commute to Manhattan and a strong school district. Those same school districts drive some of the highest property taxes in the country, which is why the tax bill often decides a large Westchester DSCR loan.
In short: Yes. LendingStreet finances Westchester County 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. In Westchester, a two-family home often qualifies more easily than a single-family at the same price, because two rents carry one tax bill. Co-ops are generally not financeable with an investor DSCR loan, and local rent rules vary by municipality, so confirm before you buy.
Westchester's tenant base is mostly Manhattan commuters and families who want a specific school district before they buy. Corporate employers in the county, including large headquarters in Armonk, Purchase and Tarrytown, add relocating executives on multi-year assignments.
Rents tend to follow the train lines and the school district. These are general patterns only; use recent leases on the same street or in the same building.
Westchester is known for very high property taxes, and most of the bill usually comes from the school district. On a DSCR loan, taxes are part of the payment, so a home in a top district can need noticeably more equity than a similar home in a town with lower taxes.
Owner-occupants may receive STAR and other exemptions that investors cannot claim, and many owners grieve their assessments. Pull the full current bill without owner exemptions, and ask about any pending or recent grievance.
Some villages also bill village taxes separately from town and school taxes. Add every bill together before you run the ratio.
This example is illustrative and not a quote. An investor is choosing between two $1,200,000 rentals. The first is a single-family home in a high-tax school district that leases for $7,800 a month, with taxes of $2,800 and insurance of $250. The second is a legal two-family in a river town with rents of $4,300 and $4,100, taxes of $1,500 and insurance of $325.
At 70% LTV, either loan is $840,000 and the down payment is $360,000. At a sample rate of 7.25% on a 30-year fixed, principal and interest is about $5,730. The single-family's total payment is about $8,780, for a DSCR of about 0.89x. The two-family's total payment is about $7,555, and $8,400 in rent divided by that is about 1.11x.
Same price, same loan, very different results. The single-family would likely need more equity or a sub-1.0 program, while the two-family clears the 1.0x standard minimum with room.
| Line item | Single-family, high-tax district | Legal two-family, river town |
|---|---|---|
| Loan amount (70% LTV) | $840,000 | $840,000 |
| Principal and interest (7.25%, 30 years) | $5,730 | $5,730 |
| Property taxes | $2,800 | $1,500 |
| Insurance | $250 | $325 |
| Total monthly payment | $8,780 | $7,555 |
| Monthly rent | $7,800 | $8,400 |
| DSCR | About 0.89x | About 1.11x |
Executive tenants relocating to a Westchester employer, or to Manhattan with a family that wants a specific school, often sign one- or two-year leases at the top of the market. Some leases are signed by the employer or include a relocation allowance.
For a DSCR loan, a signed lease at a clear rent is the strongest income you can show. The appraiser still checks that the rent is in line with the market, and a lease far above comparable rents may not be used in full. How a lease that starts after closing is treated varies by program, so share it early.
Relocation tenants often move on a school-year calendar, with many leases starting in summer. If you buy in spring, plan for a vacancy until the new lease begins, and keep reserves accordingly.
Westchester has a large stock of co-op apartments, especially in White Plains, Yonkers, Bronxville, Scarsdale and Hartsdale. A co-op buyer owns shares, not real property, and boards often restrict subletting. Investor DSCR programs, ours included, generally do not finance co-ops.
Condos are real property and can qualify if the building passes review of its budget, reserves, insurance, litigation and rental rules. Common charges count in the payment.
On two-family homes, the certificate of occupancy matters. Accessory apartments built without permits are common in older housing stock, and a unit that is not legal usually gets no rent credit. Confirm the legal unit count with the building department before you sign.
| Item | Single-family | Legal two- or three-family | Condo | Co-op |
|---|---|---|---|---|
| Financeable with DSCR | Yes | Yes | If the building passes review | Generally no |
| Rent streams | One | Two or three | One | Not applicable |
| Main approval issue | Tax bill | Legal unit count | Building review and charges | Share ownership and board rules |
New York's Emergency Tenant Protection Act brings rent stabilization to some Westchester municipalities, generally for buildings with six or more units built before 1974. Most 1-4 family homes fall outside it, but the rules depend on the municipality, and state tenant protection laws apply to all rentals. Confirm with a New York attorney.
Some municipalities outside New York City have also opted into the state's Good Cause Eviction law. Whether it applies depends on the town or city and the property.
Short-term rental rules are set village by village and town by town, and many limit or ban stays under 30 days. Most large Westchester DSCR loans qualify on annual leases.
Many Westchester investor loans fall between $500K and $1M. Common examples are two- and three-family homes in Yonkers, Mount Vernon, New Rochelle and Port Chester, single-family rentals in Ossining, Peekskill and Yorktown, and condos in White Plains and New Rochelle.
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.
Multi-family homes in the southern cities often clear the ratio more easily, but check rent regulation status and the certificate of occupancy for each unit.
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 estate homes in Bedford, Purchase or Rye with few close sales. Executive leases with corporate tenants can make strong files because the lease term and rent are clear.
New York's mansion tax applies to many residential purchases of $1 million and up, and mortgage recording tax applies to most loans. Budget for both on top of the down payment.
Owners who bought in the river towns or southern cities years ago often have enough equity to fund their next purchase. A cash-out refinance goes up to 75% LTV, often lower on large balances, and a rate-and-term refinance is available if you only want to retire an existing loan.
The rent is measured against the new, larger payment, so taking more cash lowers the ratio, and high Westchester taxes leave less room. 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.
Send the address, price, rents and target leverage. The financing team reviews the scenario and comes back with 2-3 options, such as a higher-leverage sub-1.0 option next to a lower-leverage standard one.
Yes. DSCR loans start at $150,000 with no stated maximum. Loans of $500K to $1M are common for two- and three-family homes in Yonkers, New Rochelle and Port Chester, and condos in White Plains.
Generally not. Co-op buyers own shares rather than real property, and boards often limit subletting. Condos can qualify if the building passes review.
High school and municipal taxes raise the monthly payment, which lowers the ratio. A larger down payment or a sub-1.0 program are the usual answers.
Check the certificate of occupancy with the building department. A unit that is not legal usually gets no rent credit in a DSCR loan.
In some municipalities, generally for buildings with six or more units built before 1974. Most 1-4 family homes fall outside it. Confirm with a New York attorney.
Many villages and towns limit or ban stays under 30 days. Most large Westchester loans qualify on annual leases. Check local rules.
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. 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.
Not with our programs. LendingStreet finances non-owner-occupied investment property only.
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