DSCR Loan New York
- LTV: 58.05%
- Term: 30 Year
- Rate: 7.375%
- Points: 1.0%
What are DSCR Loans used for in New York?
1. New York City
2. Brooklyn
3. Long Island
4. Rochester
5. Albany
What are dscr loans used for in New YorK?
DSCR loans are a powerful financing tool for real estate investors in New York, allowing them to qualify for loans based on the rental income potential of the property rather than personal income.
These loans use the Debt Service Coverage Ratio (DSCR)—a calculation comparing rental income to property expenses to determine eligibility and loan amounts.
In New York, where rental demand is strong, DSCR loans are commonly used to finance long-term rental properties, short-term vacation rentals, and multi-unit buildings.
For those following the BRRRR investing strategy, DSCR loans are ideal for refinancing after stabilizing a property. This strategy allows investors to build a portfolio of rental properties while preserving capital for future projects.
If you're considering investing in Airbnb rentals, DSCR loans can also help finance short-term rentals in New York’s high-demand vacation and business rental markets. Learn more in our guide: Financing Airbnb Rentals with DSCR Loans.
To understand how to calculate DSCR and determine your eligibility, visit the How to Calculate DSCR section of this page.
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DSCR loans are a powerful financing tool for real estate investors in New York, allowing them to qualify for loans based on the rental income potential of the property rather than personal income.
These loans use the Debt Service Coverage Ratio (DSCR)—a calculation comparing rental income to property expenses to determine eligibility and loan amounts.
In New York, where rental demand is strong, DSCR loans are commonly used to finance long-term rental properties, short-term vacation rentals, and multi-unit buildings.
For those following the BRRRR investing strategy, DSCR loans are ideal for refinancing after stabilizing a property. This strategy allows investors to build a portfolio of rental properties while preserving capital for future projects.
If you're considering investing in Airbnb rentals, DSCR loans can also help finance short-term rentals in New York’s high-demand vacation and business rental markets. Learn more in our guide: Financing Airbnb Rentals with DSCR Loans.
To understand how to calculate DSCR and determine your eligibility, visit the How to Calculate DSCR section of this page.
New York DSCR Loan Products
Low Rates, from 1.0% Origination for long term & short term rentals in New York.
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Long Term Rental
DCSR Loans New York
Rates from 6.75%
LTV Up To 80%
From 1.0% Origination Points
Minimum DSCR: 1.0
Closing Time 14 Days
Appraisal Required
Minimum Credit Score: 660
Property Condition C4 Required
Purchase, Refinance, and Cash Out Available
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Short Term Rental
DCSR Loans New York
Rates from 6.95%
LTV Up To 80%
1-2% Origination Points
Minimum DSCR: 1.0
Closing Time 21 Days
Appraisal Required & AirDNA Check
Minimum Credit Score: 680
Property Condition C4 Required
Purchase, Refinance, Cash Out Available
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How To Determine DSCR For New York Rental Properties?
The Debt Service Coverage Ratio (DSCR) is calculated by dividing the monthly rent of the property by the monthly loan payment (principal + Interest), taxes, insurance and association fees (PITIA).
DSCR = Rent/PITIA
The basis of a DSCR loan in New York, is that the rent you collect from tenants leasing the property should be greater than the cost to own and operate the property.
Investment purpose rental properties with a DSCR greater than 1.0 are called “cash flowing”. You can calculate the DSCR of your rental property with our DSCR Loan Calculator.
(DSCR Evaluation)
Property Value: $474,000
Loan: $379,200
Interest Rate: 7.25%
Ammortization: 30 YR (FRM)
Monthly Rent: $3,995
P&I Payment: $2,586.81
Monthly Taxes: $400.00
Monthly Insurance: $180
Monthly HOA: $0
DSCR 1.26
New York DScr Loan process
Ridge Street closes New York DSCR loans in 14-21 days.
Apply Or Get Pre-Approved Online
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Receive your term sheet
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Submit Docs
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Appraisal or BPO
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Closing
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When To Use a DSCR Loan?
DSCR loans are used by investors to "hold" real estate. These loans are long term and amortizing. This allows investors to continuously gain equity in their property while generating monthly cashflow.
Investors either use DSCR loans when purchasing a property or when refinancing it. The BRRRR Investing Strategy is popular among investors in which the DSCR loan is used to "cash out" the property.
Benefits Of DSCR LoanS Compared To Other Loan Types
Other benefits of DSCR loans include:
- No income verification
- Can be used for long term and short term rentals (Financing Airbnb's for example)
- Cost Effective
Best Rental Markets In New York For DSCR Loans
New York offers diverse opportunities for real estate investors, from bustling urban centers to serene suburban markets. The state’s mix of high-demand rental markets, driven by its vibrant economy, cultural attractions, and population density, makes it a prime location for DSCR-funded investments. In this guide, we explore some of the top rental markets in New York, showcasing why they stand out for leveraging rental income to secure financing. Whether you’re targeting steady income in suburban areas or the dynamic cash flow of urban hubs, New York has options to suit every investment strategy.
New York City (Manhattan)
Manhattan remains a prestigious and high-demand market for rental property investors, driven by its unmatched global appeal, thriving business ecosystem, and vibrant cultural scene. Despite higher property prices, the strong demand for rentals from professionals, students, and international tenants ensures consistent income potential. Manhattan's limited housing supply and premium rental rates make it an ideal market for leveraging DSCR loans to acquire high-value, cash-flowing properties. For investors seeking long-term appreciation and stable rental demand, Manhattan offers unparalleled opportunities.
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Brooklyn
Brooklyn has emerged as a top market for rental property investors, combining strong rental demand with a vibrant, diverse community. Known for its cultural appeal and proximity to Manhattan, Brooklyn attracts a mix of young professionals, families, and creatives seeking quality rental housing. The borough offers a range of investment opportunities, from trendy neighborhoods with premium rental rates to emerging areas with growth potential. Investors can use DSCR loans to acquire properties that generate consistent cash flow while benefiting from Brooklyn's steady appreciation. This dynamic market is ideal for building a profitable and resilient portfolio.
Long Island
Long Island offers a lucrative market for rental property investors, combining suburban charm with proximity to New York City. The region's strong demand for rental housing comes from families, young professionals, and retirees seeking quality homes in desirable neighborhoods. With excellent schools, beaches, and commuter access, Long Island attracts tenants willing to pay premium rents. Investors can use DSCR loans to secure properties in this stable market, capitalizing on consistent rental demand and long-term appreciation potential. Long Island's blend of lifestyle appeal and investment opportunity makes it a prime choice for building a solid portfolio.
Buffalo
Buffalo presents a compelling opportunity for rental property investors, with its affordable home prices and higher DSCR potential. The city’s revitalization efforts and stable rental demand make it an attractive market for both traditional and Section 8 housing investments. Buffalo's lower property costs allow investors to maximize cash flow, while programs like Section 8 ensure reliable rental income. For those using DSCR loans, Buffalo offers the chance to secure high-yield properties in a market primed for growth and consistent returns.
New York DSCR Loan FAQ’s
How can I Improve the DSCR of my property?
- Increase Your Down Payment. By Increasing your down payment your loan amount will go down and your DSCR will increase. If you’re struggling to improve your DSCR past 1.0, increasing your down payment is an option you may have to consider.
- Ask Your Lender About A Rate Buy Down. Some lenders, including Ridge Street, allow you to pay an additional fee at closing in exchange for a lower rate. In some cases, a rate buydown will allow you lower your DSCR without increasing your overall cash required to close.
- Push For Less Expensive Insurance. Ask your insurance broker if there is anything they can do to lower your policy fee. A lower insurance policy fee will increase your DSCR.
Could I use a DSCR loan if I have to renovate a property?
You can start by getting a short term fix and flip loan to renovate the property and then refinance the property with a DSCR loan. The strategy of buy, rehab, rent, refinance, and repeating is called The BRRRR Strategy.
Can I use a DSCR loan on a Vacation property?
Absolutely! This is one of the main use cases for a DSCR loan.
What loan amounts can I get for a DSCR loan?
Between $50K and $2M. As long as a the DSCR is greater than 1.0, Ridge Street will lend on it.
Are DSCR loans only for investment properties?
Yes. If you are buying a piece of real estate which you intend to live in, then you would not qualify for a DSCR loan.
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How to Get A DSCR Loan In New York with Ridge Street?
Ridge Street is the #1 DSCR Rental Property Lender in New York. We pride ourselves on fast closings and fairly priced loans. Get approved for your next project today.
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