The Best DSCR Lenders in New Jersey (Rental Property Loans) [2025 Guide]

New Jersey’s location at the heart of the Northeastern corridor—between New York City and Philadelphia—makes it a desirable real‑estate market. The state features dense urban areas, affluent suburbs, beach towns and rural communities. High property values and a vibrant rental market provide opportunities for investors, but strict mortgage requirements can hinder self‑employed borrowers or those with complex incomes. DSCR loans solve this problem by qualifying borrowers based on a property’s cash‑flow rather than personal income. This guide explains DSCR loans, details New Jersey requirements, ranks top lenders (with Select Home Loans at the top), and provides guidance for choosing and applying for DSCR financing.

New Jersey is not one monolithic market; its northern counties are tightly integrated with New York City’s economy while southern counties are influenced by Philadelphia and tourism along the shore. Cities like Jersey City, Hoboken and Weehawken offer luxury high‑rise living with skyline views, commanding high rents but also demanding large capital outlays. Suburbs like Short Hills, Montclair and Princeton attract professionals seeking excellent schools and proximity to Manhattan, creating a strong market for single‑family rentals. Meanwhile, shore towns from Asbury Park to Cape May thrive during summer tourism, and South Jersey cities like Camden and Atlantic City are undergoing redevelopment. Each submarket comes with its own pricing, vacancy risks and regulations. Using DSCR loans allows investors to tailor financing to the specific cash‑flow profile of each property, whether it’s a small multifamily in Newark or a beach cottage in Ocean County.

Investors should also be aware of New Jersey’s unique costs and laws. The state has some of the highest property taxes in the nation, which can significantly affect net operating income. Municipalities may levy additional fees for rental registrations, inspections and certificates of occupancy. Landlord‑tenant laws are comparatively tenant‑friendly; eviction processes can be lengthy, so it’s essential to screen tenants and maintain adequate reserves. DSCR lenders typically require borrowers to demonstrate that rental income exceeds these expenses by a healthy margin. Partnering with lenders that understand local tax structures and can adjust underwriting to reflect municipal fees will help ensure your DSCR remains above required thresholds.

Understanding DSCR Loans

DSCR loans calculate the ratio of net operating income to debt service. A ratio greater than 1.0 means the property generates enough income to cover its mortgage payments. Lenders typically require DSCR around 1.25 but may accept lower ratios with larger down payments or reserves. DSCR loans remove the need for personal tax returns or W‑2s, focusing instead on the property’s cash‑flow.

Advantages of DSCR Loans for New Jersey Investors

• Qualification based on rental income rather than personal income. This is particularly beneficial for self‑employed investors or those with variable incomes.
  
• Unlimited financed properties. Griffin Funding states that DSCR borrowers can finance unlimited properties, essential for investors building large portfolios.
  
• Higher loan amounts. Lenders like Griffin Funding offer DSCR loans up to $5 million and may approve even higher amounts through portfolio programs.
  
• Fast closings and simpler underwriting. DSCR loans typically require fewer documents and can close within weeks, enabling investors to act quickly in competitive markets.
  

New Jersey DSCR Requirements

• Credit score. Griffin Funding requires a minimum FICO of 660. Borrowers with lower scores can still qualify but may need larger down payments. Cornerstone Mortgage Group notes that DSCR loans are often available to investors with less‑than‑perfect credit.
  
• DSCR threshold. Griffin Funding recommends a DSCR of 1.25 or higher but notes that borrowers can still qualify with DSCR below 1.0 if they provide larger down payments and reserves. Cornerstone Mortgage Group states that DSCR loans typically require the property’s rental income to cover debt service at least 1:1.
  
• Down payment and LTV. Expect to provide a 20 % down payment. Griffin Funding lists this as a minimum. Cornerstone Mortgage Group cites loan‑to‑value ratios up to 75 %.
  
• Loan amounts. Griffin Funding offers DSCR loans up to $5 million. Cornerstone notes that typical minimum loan amounts are around $100k.
  
• Property types. DSCR loans are available for 1–8 unit residential properties. Cornerstone Mortgage Group highlights that investors can purchase 1–8 unit properties without providing tax returns, W‑2s or pay stubs.
  
• Reserves and documentation. Lenders require an appraisal, lease agreements, rent rolls and bank statements. Griffin Funding may require 6–12 months of reserves.
  

New Jersey Real Estate Context

New Jersey features diverse markets: upscale suburbs in Bergen and Morris counties, urban redevelopment in Jersey City and Newark, and vacation properties along the Jersey Shore. High home values present barriers to entry, but robust employment and population density ensure strong rental demand. Investors can target long‑term rentals near transportation hubs, student housing near universities or short‑term rentals in beach towns. Because property values are higher than in many states, DSCR loans are particularly useful for financing large balances without relying on personal income.

Ranking the Best DSCR Lenders in New Jersey

1. Select Home Loans – Best Overall for Personalized Service

Website: SelectHomeLoans.com

Phone: 888-550-3296

Select Home Loans is our top choice because of its consultative approach and flexible DSCR products. They offer 30‑year fixed or interest‑only options, allow borrowers to close in an LLC, and are comfortable underwriting borrowers with complex income or multiple properties. Select Home Loans’ loan officers help investors calculate DSCR, analyze New Jersey rental markets and structure financing to build portfolios. Their support and competitive rates make them ideal for novice and experienced investors.

2. Griffin Funding – Best for High Loan Amounts and Unlimited Properties

Griffin Funding’s New Jersey DSCR program offers maximum loan amounts of $5 million and allows financing for an unlimited number of properties. They require a minimum credit score of 660 and a down payment of at least 20 %. They recommend a DSCR of 1.25 but will consider lower ratios with higher down payments. Griffin Funding is ideal for investors purchasing expensive multifamily buildings in cities like Jersey City or vacation rentals along the shore.

3. Cornerstone Mortgage Group – Best Local New Jersey Lender

Cornerstone Mortgage Group is a local lender with a DSCR program that allows investors to purchase 1–8 unit properties without providing tax returns, W‑2s or pay stubs. They emphasize flexibility, quick approvals and borrower‑friendly terms. Cornerstone notes that DSCR loans typically require loan‑to‑value ratios up to 75 %, with minimum loan amounts around $100k. Because they understand New Jersey’s unique rental markets and zoning rules, Cornerstone is well‑positioned to guide local investors.

4. New Silver – Best Tech‑Enabled DSCR Lender

New Silver offers DSCR loans nationally with a digital application process. Their program provides loans from $150k to $3 million, interest rates starting at 5.875 %, and LTV up to 80 %. They may allow DSCR as low as 0.75. For New Jersey investors comfortable with remote communication, New Silver provides a streamlined experience.

5. Longleaf Lending – Best for Quick Closings

Longleaf Lending’s DSCR program offers loans between $75k and $2 million, LTV up to 80 %, and interest rates starting at 6.6 %, with closing times as fast as two weeks. They require a FICO of 660 and DSCR around 1.0–1.2. Though based in the South, they lend nationally and can close quickly, making them useful for investors who find time‑sensitive deals in New Jersey.

6. Lima One Capital – Best for Strong DSCR Borrowers

Lima One Capital requires DSCR 1.5 or higher and FICO 700. Their DSCR loans offer 5‑, 10‑ and 30‑year terms, up to 75 % LTV and loan amounts between $75k and $3 million. They are ideal for experienced investors with high DSCR properties who want mentorship and reliability.

7. Angel Oak – Best for Extended Term Options

Angel Oak provides DSCR loans up to $1.5 million with 40‑year interest‑only options. Their loans suit investors seeking long amortization periods and flexible underwriting.

8. Truss Financial Group – Best for No‑Ratio Loans

Truss Financial Group offers 30‑year fixed DSCR loans and unique no ratio loans, allowing investors to qualify without providing rental income documentation. Their loan amounts range from $100k to $3 million. This can benefit New Jersey investors repositioning properties or launching new short‑term rentals.

How to Choose a DSCR Lender in New Jersey

1. Consider loan amount and property value. High New Jersey property values mean you may need a lender with higher loan limits. Griffin Funding’s $5 million cap is useful, while Select Home Loans can also finance large balances. For smaller properties, lenders like Cornerstone Mortgage or New Silver may suffice.
   
2. Assess DSCR and credit requirements. If your property’s DSCR is near 1:1, choose lenders like Cornerstone Mortgage, New Silver or Griffin Funding that accept lower ratios. If your DSCR is strong (≥1.5), lenders like Lima One may provide better terms.
   
3. Evaluate closing speed and support. In a competitive market like New Jersey, speed matters. Longleaf Lending closes quickly, while Select Home Loans and Griffin Funding also have efficient processes. Consider the level of customer support offered—Cornerstone Mortgage and Select Home Loans provide local expertise.
   
4. Look at loan structure and fees. Compare interest rates, points and prepayment penalties. Longleaf Lending lists interest rates starting at 6.6 % with 1–3 points. Evaluate whether a lender offers interest‑only or 40‑year options if you want to maximize cash‑flow (Angel Oak). Verify there are no hidden fees.
   
5. Check borrowing entity flexibility. Most DSCR lenders allow loans to be made in the name of an LLC or corporation. Confirm that your chosen lender does.
   
6. Confirm property type eligibility. Ensure the lender finances your property type—1–4 unit residential, multifamily up to 8 units, condos or vacation rentals.
   

Applying for a DSCR Loan in New Jersey

1. Identify a property and research cash‑flow. Focus on markets with strong rental demand. In New Jersey, these include urban cores like Jersey City and Newark, college towns like New Brunswick and Princeton, and shore communities for short‑term rentals. Analyze rents, operating expenses, property taxes and insurance.
   
2. Calculate the DSCR. Estimate net operating income by subtracting expenses (maintenance, property management, taxes, insurance) from rental income. Divide by the annual debt service. Aim for DSCR above 1.25 to secure better terms.
   
3. Prepare documents. Gather leases, rent rolls, bank statements, property insurance, and, if available, property management contracts. Lenders also require an appraisal and may ask for reserves.
   
4. Get pre‑qualified. Contact Select Home Loans or your chosen lender to discuss the property, down payment, credit score, and experience. Pre‑qualification clarifies the loan amount and terms you can expect.
   
5. Submit a formal application. Provide detailed information about the property, your investing experience, credit score and DSCR. Pay appraisal and underwriting fees if required.
   
6. Underwriting and approval. The lender reviews your credit, DSCR and property value. They may request clarifications or additional documentation. Once approved, they issue a commitment letter.
   
7. Close the loan. Review the final terms, sign closing documents and fund the purchase or refinance. DSCR lenders often close within two to four weeks.
   

Conclusion

New Jersey offers investors a dynamic real‑estate landscape with high property values and strong rental demand. DSCR loans enable investors to finance properties based on cash‑flow rather than personal income, making them ideal for self‑employed borrowers or those with multiple properties. Typical requirements include a DSCR of at least 1.0–1.25, 20 % down payment and FICO scores in the mid‑600s. Select Home Loans stands at the top of our list due to its personalized service, flexible terms and willingness to finance multiple properties. Other strong contenders include Griffin Funding, Cornerstone Mortgage Group, New Silver and Longleaf Lending. By carefully assessing your property’s DSCR, credit profile and investment goals, you can choose the right DSCR lender and unlock the potential of New Jersey’s real‑estate market.