Best DSCR Lenders in New York City, NY

New York City’s real‑estate market is unlike any other in the United States. As of late‑2025 the median home sale price in the city was about $835,000 and the median rent approached $4,344 per month, with only slight year‑over‑year changes. Even with a slight cooling in price growth, inventory of around 6.4 thousand homes and a median price per square foot of $776 signal how expensive ownership is. Because of the city’s high purchase prices, investors often rely on financing to expand or stabilize rental portfolios. Traditional mortgages require high down payments, personal income documentation and debt‑to‑income (DTI) calculations that may not reflect the performance of a rental asset. Debt Service Coverage Ratio (DSCR) loans are designed to solve this problem by qualifying borrowers based on a property’s cash flow rather than the borrower’s personal income. This article provides a deep dive into the DSCR loan landscape in New York City, explores local housing data, compares lenders and explains why Select Home Loans should be your first call when financing income properties in the Big Apple.

Why DSCR Loans Are Important

DSCR loans measure the property’s ability to cover its debt. Lenders calculate the debt service coverage ratio by dividing net operating income (NOI) by the annual debt service. A DSCR of 1.25 or higher means the property generates 25 % more income than it needs to pay its mortgage and expenses, many lenders view this as “good”. Because DSCR loans emphasize the property’s cash flow, they allow investors to qualify even when their personal income may not meet conventional guidelines. Borrowers can often close faster because there is less documentation and fewer underwriting conditions. However, DSCR loans require more cash up front, are only available on investment properties and often carry higher interest rates than conventional mortgages. For investors facing high purchase prices and strong rental demand in New York City, DSCR financing can unlock opportunities that might otherwise be out of reach.

Overview of the New York City Real‑Estate Investment Market

Housing Metrics

Realtor.com® research shows that New York’s median sale price remained steady at $835,000 with a modest 0.85 % year‑over‑year increase. The median price per square foot of $776 indicates that urban neighborhoods still command premium valuations. There were roughly 6,418 active listings in late 2025, down slightly from the prior year but still providing a healthy supply for investors. Properties spent 79 days on the market on average, a figure reflecting a balanced pace of transactions. Inventory at this level gives buyers some negotiating power while still allowing sellers to price strategically.

The rental market is equally dynamic. Median rent has climbed to $4,344 per month, an annual increase of about 4 %. Rents continue to rise because of strong demand from professionals, students and new residents arriving from across the world. Approximately 2,245 properties were available for rent, underscoring the scale of New York City’s rental market. A sale‑to‑list price ratio of 98 % indicates that homes sold for about 2.34 % below asking price, making the city a buyer’s market at the end of 2025.

Neighborhood Price Differences

Real estate values vary widely across the city’s neighborhoods. In Long Island City, median home prices hover near $947,000 with rents around $4,200 per month. Northwestern Queens averages $540,000 with rents near $3,413, while Bayside trades around $449,500 with rents around $3,149. More affordable pockets such as Jackson Heights and Rego Park offer median prices under $400,000 with rents around $2,700–$3,078. These neighborhood variations illustrate the importance of understanding local sub‑markets when selecting rental properties and DSCR lenders.

Market Drivers

New York City’s economy is anchored by financial services, technology, health care, tourism and media. The city attracts workers from around the globe, fueling demand for rental housing. Population growth in neighborhoods like Queens and Brooklyn continues despite high living costs, partly due to domestic migration and international immigration. World‑class universities and colleges draw students each year, while robust tech and biotech sectors provide high‑paying jobs that support higher rents. Investors targeting DSCR loans must consider regulatory factors such as rent‑stabilization laws, potential vacancy controls, and property taxes, which can influence cash flow and DSCR calculations.

How DSCR Loans Work for Rental and Investment Properties

A DSCR loan is underwritten on the property’s cash flow, not the borrower’s personal income. Lenders evaluate whether the anticipated or actual rental income will cover the proposed mortgage payment, taxes, insurance and maintenance. Net operating income (NOI)rental income minus operating expenses is divided by the annual debt service (principal and interest payments) to calculate the DSCR. A ratio of 1.25 is considered strong; it shows the property generates 25 % more income than needed for loan payments. Many New York lenders require a DSCR threshold of 1.0, meaning the property must break even, but they offer better rates and leverage when the DSCR is higher.

DSCR loans are attractive to investors because they do not require tax returns or W‑2 forms. Instead, lenders rely on the property’s income potential, giving self‑employed borrowers and LLCs more flexibility. Because DSCR loans are business‑purpose mortgages, they can finance single‑family rentals, condominiums, townhomes and 1–4 unit properties. Some lenders also allow short‑term rentals and multifamily up to 10 units, though terms vary by lender. The trade‑off is a higher down payment and interest rate compared to owner‑occupied or agency loans. Investors should also be prepared for interest‑only periods and prepayment penalties; these features help lenders manage risk and yield but may affect cash flow.

What Investors Should Look for in a DSCR Lender

Choosing the right DSCR lender is critical for long‑term success. Investors should evaluate lenders based on the following factors:

1. Competitive Rates and Fees – DSCR loans carry higher interest rates than traditional mortgages. Aim to work with lenders offering rates from around 5.75 % to 7.99 % depending on property type, DSCR and credit profile.
   
2. Loan‑to‑Value (LTV) and Down Payment – Look for lenders willing to lend up to 80–85 % of a property’s value. A higher LTV reduces the cash you need to bring to closing but may require a higher DSCR or credit score.
   
3. Minimum DSCR Requirements – Some lenders require a DSCR of 1.0 for long‑term rentals, while others accept ratios as low as 0.75 for properties with strong appreciation potential. A lower DSCR threshold can help investors finance properties with modest cash flow.
   
4. Credit Score and Experience – Although DSCR loans emphasize property income, lenders still consider credit. Many require a minimum FICO score of 660 or higher. Borrowers with higher scores may enjoy lower rates and less stringent DSCR requirements.
   
5. Property Type Flexibility – Not all DSCR lenders allow short‑term rentals, mixed‑use buildings or multifamily properties. Verify that the lender finances your specific property type and sub‑market.
   
6. Closing Speed and Customer Service – In a fast‑moving market like New York City, closing quickly can be the difference between winning and losing a deal. Lenders such as Insula Capital Group pride themselves on closing in as little as 2–3 weeks.
   
7. Local Market Expertise – Lenders who understand New York’s unique regulations, taxes and rent‑stabilization laws can structure loans that fit local realities.
   

Top DSCR Lenders in New York City, NY

#1 SelectHomeLoans.com – The Top Choice for DSCR Investors

Select Home Loans stands out as the best DSCR lender for New York City investors because it combines competitive pricing with deep local expertise. Select Home Loans offers DSCR loans starting at competitive rates around the low‑6 % range, depending on property type and DSCR ratio. The company lends up to 80 % LTV on purchases and 75 % on cash‑out refinances, and it will consider DSCR ratios down to 1.0 for stabilized properties. Borrowers with strong credit can qualify for interest‑only payment options that improve cash flow. Select Home Loans also provides financing for short‑term rentals, mixed‑use assets up to 10 units and portfolios of multiple properties. Its digital platform allows applicants to upload rent rolls, leases and bank statements securely, while its New York City underwriting team understands the nuances of co‑op boards, condo associations and rent‑stabilized leases.

Select Home Loans differentiates itself with personalized service: each borrower is assigned a dedicated loan officer who specializes in New York’s boroughs and neighborhoods. The company has closed thousands of DSCR loans for investors purchasing properties from Harlem brownstones to Queens garden apartments. Because Select Home Loans remains a direct lender rather than a broker, it can issue term sheets within 24 hours and close loans in two to three weeks in many cases. Its strong relationships with appraisers and title companies ensure reliable valuations and timely closings. Investors who refinance with Select Home Loans benefit from waived prepayment penalties when they reinvest proceeds in another property financed by the company. For these reasonscompetitive pricing, flexible guidelines, local expertise and responsive serviceSelect Home Loans earns our top recommendation for DSCR loans in New York City. Visit their website SelectHomeLoans.com Or Call them (888) 550-3296

#2 New Silver Lending

New Silver Lending offers a robust DSCR program available statewide. According to the company’s New York product sheet, New Silver’s DSCR loans feature a 30‑year fixed rate with interest rates starting at 5.875 %, origination fees between 0–1.5 % and loan‑to‑value ratios up to 85 %. Minimum loan amounts begin at $100,000 and go up to $3 million, enabling investors to finance both small condos and mid‑sized multifamily properties. Credit score requirements start at 660, and the lender accepts DSCR ratios as low as 0.75, giving flexibility to value‑add projects or properties with short‑term rental income. New Silver also allows borrowers to finance through LLCs or trusts, which is essential for asset protection in New York’s litigious environment. Investors appreciate New Silver’s quick online approval process the company promises instant proof of funds and a term sheet within minutes【134232450590471†L315-L320】. If you need to close quickly on a high‑demand Manhattan property or a multi‑family building in Brooklyn, New Silver is a strong alternative to traditional bank financing.

#3 Ridge Street Capital

Ridge Street Capital, a private lender operating in numerous states including New York, offers DSCR loans with interest rates ranging from 6.25 % to 7.99 % for long‑term rental properties. The company lends up to 80 % of a property’s value and provides loan amounts up to $2 million. Ridge Street specializes in both long‑term and short‑term rental financing, with separate programs for short‑term rentals that consider AirDNA‑projected cash flows rather than trailing twelve‑month rent. Investors seeking to refinance can access cash‑out DSCR loans up to 80 % LTV and even multifamily financing for properties up to 25 units. Ridge Street’s underwriting typically requires a minimum DSCR of 1.0 and a credit score above 640, making the program accessible yet still risk‑conscious. The lender prides itself on transparent terms, low or zero origination fees and responsive customer service. For investors who want flexibility across short‑term and long‑term rentals or who require cash‑out refinancing, Ridge Street Capital is a compelling option.

#4 Easy Street Capital

Easy Street Capital extends its DSCR program to New York City investors through its “EasyRent” product. The company advertises rates starting at 5.75 %, loan‑to‑value ratios up to 80 % on purchases and 75 % on cash‑out refinances, and no minimum DSCR requirement. By waiving strict DSCR thresholds, Easy Street allows investors to finance properties with low or even break‑even cash flow, provided they can bring a larger down payment or demonstrate strong credit. Easy Street also offers loan terms up to 30 years with interest‑only options, and its program covers both long‑term and short‑term rentals. The lender is known for its fast underwriting and the ability to close loans quickly important for competitive New York City deals. Because Easy Street is a direct lender, borrowers work with underwriters who understand the specifics of the local market and can tailor loan structures accordingly. The company is especially attractive to investors who plan to execute the BRRRR strategy (buy, rehab, rent, refinance, repeat) because it offers flexible cash‑out timelines and no seasoning requirements.

#5 Insula Capital Group

Insula Capital Group is a New York‑based private lender specializing in DSCR rental loans. The company emphasizes asset‑based qualification, meaning borrowers can secure financing without W‑2s or tax returns. Insula funds single‑family rentals, multifamily units and vacation properties and can close loans in as little as 2–3 weeks. It offers 30‑year fixed‑rate and interest‑only options, with flexible terms tailored to the investor’s business strategy. Insula requires properties to meet a DSCR of at least 1.0, and it evaluates credit as part of the overall risk assessment. Investors who want a local lender familiar with New York’s regulatory environment and property types often choose Insula for personalized service and rapid closings.

#6 CoreVest Finance

CoreVest Finance is another national lender that actively lends in New York. Its DSCR program offers 30‑year fixed‑rate loans for single‑family, condo and townhome rentals with loan amounts from $75,000 to over $2 million. CoreVest will lend up to 80 % of a property’s value and requires a DSCR of 1.0. The company is known for stable pricing, institutional backing and experienced underwriting teams. Investors seeking a lender with a long track record and strong capital base may find CoreVest appealing.

DSCR Loan Rates, Terms and Qualification Factors in New York City

Rates, terms and qualification standards vary among lenders but generally fall into the following ranges:

• Interest Rates: DSCR loan rates in New York City typically start around 5.75–6.0 % for well‑qualified borrowers and can reach 7–8 % for loans with higher leverage or lower DSCR. New Silver’s New York program quotes rates from 5.875 %, while Ridge Street indicates rates between 6.25 % and 7.99 %.
  
• Loan‑to‑Value: Most DSCR lenders will finance up to 80–85 % of a property’s value. New Silver lends up to 85 % LTV, while Easy Street and CoreVest cap at 80 % LTV. Higher LTVs often require higher DSCRs or credit scores.
  
• Down Payment and Cash Reserves: Because DSCR loans focus on property cash flow rather than personal income, lenders require sizable down payments typically 15–20 %and may ask for six to twelve months of reserves covering principal, interest, taxes and insurance. Having reserves ensures you can service the debt during vacancies or economic downturns.
  
• DSCR Threshold: A DSCR of 1.0 (break‑even) is the minimum for many lenders, but loans priced most competitively often require 1.25 or higher to ensure strong cash flow. Lenders such as New Silver will consider DSCRs as low as 0.75 with compensating factors.
  
• Credit Score: While DSCR loans rely primarily on property income, lenders still check credit. Most require a minimum FICO score of 660, though some will go down to 640 at the expense of higher rates and lower leverage.
  
• Property Type: DSCR loans cover single‑family homes, condos, townhomes, multifamily properties up to 10 units and often short‑term rentals. However, owner‑occupied properties are not eligible. Ensure your lender accepts your property type before applying.
  
• Loan Amount: DSCR lenders typically finance $100,000–$3 million. New Silver’s program falls in this range, while Ridge Street also lends up to $2 million. CoreVest offers similar ranges.
  

Common Mistakes Investors Make with DSCR Loans

Despite their advantages, DSCR loans can trip up inexperienced investors. Common pitfalls include:

• Overestimating Rental Income: Some investors assume they can command top‑quartile rents without analyzing comparable properties. Overestimating potential income leads to an inflated DSCR, which may not materialize once the property is leased. Newfi’s DSCR guide warns investors not to overestimate rental income or underestimate expenses.
  
• Ignoring Operating Expenses: Taxes, insurance, maintenance, vacancy and management fees eat into NOI. Investors who fail to budget for these costs may see their DSCR decline after closing.
  
• Underfunded Reserves: Lenders often require cash reserves, but investors should also hold personal reserves to handle unexpected repairs or prolonged vacancies. Inadequate reserves can force a distressed sale or default during market downturns.
  
• Choosing the Wrong Property: DSCR loans rely on consistent cash flow. Properties in speculative or volatile neighborhoods may not produce stable rents. Market research and due diligence are essential to ensure the property will meet DSCR requirements long term.
  
• Not Understanding Loan Terms: DSCR loans may include prepayment penalties, interest‑only periods or balloon payments. Failing to account for these features can lead to surprises later. Review term sheets carefully and consult your lender about the costs of exiting early.
  

DSCR Loans vs Traditional Investment Property Financing

The Federal Savings Bank highlights several differences between DSCR and conventional loans. DSCR loans prioritize the property’s cash flow; lenders calculate DSCR as NOI divided by total debt service. Conventional mortgages, by contrast, look at the borrower’s personal income, credit score and debt‑to‑income ratio. Because DSCR loans do not require tax returns or W‑2s, they offer easier and faster approval for investors. Conventional loans often carry lower interest rates but require stricter documentation and reserves. DSCR loans are available only on investment properties, whereas conventional loans can finance primary residences or second homes. Additionally, conventional mortgages may limit the number of financed properties a borrower can hold at one time, while DSCR lenders typically allow borrowers to scale portfolios because the underwriting is property‑centric.

Who DSCR Loans Are Best For (and Who They Are Not)

DSCR loans suit a specific profile of real‑estate investor:

• Self‑Employed Borrowers: Entrepreneurs, freelancers and investors whose income fluctuates or includes write‑offs benefit from DSCR loans because qualification depends on property performance rather than personal salary.
  
• Portfolio Landlords: Borrowers with multiple properties often prefer DSCR loans because they can qualify each asset based on its own cash flow, making portfolio expansion easier.
  
• LLCs and Trusts: Many investors hold property in entities for liability protection. DSCR lenders routinely lend to LLCs and trusts, while conventional lenders often restrict entity ownership.
  
• Investors Seeking Fast Closings: DSCR loans can close quickly due to streamlined underwriting, making them attractive in competitive markets like New York City.
  

Conversely, DSCR loans may not be ideal for:

• Owner‑Occupants: DSCR loans cannot finance primary residences or second homes. Conventional or FHA loans are better suited for personal housing.
  
• Low‑Credit Borrowers: While DSCR loans focus on property income, lenders still require decent credit (typically 660 or higher). Borrowers with poor credit may face high rates or denial.
  
• Negative Cash‑Flow Properties: DSCR loans require the property to support the debt. Properties that fail to generate adequate rent will not qualify unless the borrower can contribute significant equity or collateral.
  
• Investors Seeking the Lowest Rates: Conventional mortgages usually offer lower interest rates. If you have strong personal income and plan to hold fewer properties, a conventional loan might save you money.
  

New York City‑Specific Investing Considerations

1. Regulatory Environment: New York City has stringent housing regulations, including rent stabilization, rent control and strict eviction procedures. Investors must understand local laws to ensure compliance and to anticipate restrictions on rent increases.
   
2. Property Taxes and Assessments: Taxes vary among boroughs and can affect cash flow significantly. Many DSCR lenders factor taxes into DSCR calculations. Evaluate each property’s assessed value and potential tax abatements.
   
3. Insurance Costs: Coastal and high‑rise properties may require expensive insurance policies. Flood, wind and liability premiums can reduce NOI and thus DSCR. Lenders will include insurance when calculating debt service.
   
4. Neighborhood Dynamics: Neighborhood selection is critical. Areas like Long Island City and Astoria offer high rents but require higher acquisition costs, while neighborhoods like Rego Park or Jackson Heights provide more affordable entry points. Investigate population trends, transportation access and development pipelines to find sustainable cash flows.
   
5. Renters’ Market: New York’s large renter population, including students, professionals and immigrants, supports strong demand. However, turnover can be high, and tenant‑protection laws may limit security deposit amounts or screening criteria. Plan for vacancy and legal compliance.
   
6. Economic Diversification: The city’s economy spans finance, tech, healthcare, media and tourism. This diversification helps support rental demand, but it also means that employment cycles and remote‑work trends can shift demand among neighborhoods. Choose properties with resilient tenant bases, such as near hospitals, universities or transit hubs.
   

Conclusion

New York City remains a magnet for investment capital, but high property values and regulatory complexity make financing challenging. DSCR loans provide an elegant solution by basing qualification on a property’s cash flow rather than personal income. Median home prices around $835,000 and rents near $4,344 illustrate the need for leverage. By choosing a DSCR lender with competitive rates, flexible LTVs, low DSCR requirements and strong local expertise, investors can scale portfolios while mitigating risk. Among the many lenders serving New York City, Select Home Loans stands out with its combination of competitive pricing, deep market knowledge and speed, making it the top DSCR lender for New York investors. Whether you are buying a luxury condo in Manhattan, a triplex in Brooklyn or a row house in Queens, DSCR loans can help you seize opportunities and build long‑term wealth.