DSCR Loans in New York — Overview
New York is one of the nation’s most active real estate investment markets. From multifamily rentals in Brooklyn to upstate properties in Buffalo, the demand for smart financing is constant. A DSCR loan in New York allows you to qualify based on property rental income — not personal W-2 income.
At FAAS Funding, we structure DSCR loans for New York investors scaling rental portfolios. Whether you own a rental in Long Island or a 4-unit in the Bronx, our programs focus on property performance. Learn what a DSCR loan is here before reviewing state-specific rules.
New York’s diverse landscape offers unique opportunities. Understanding local DSCR financing is key to structuring your next deal.
New York Property Types Eligible for DSCR Loans
Investors can use DSCR financing across various property types in New York State:
- Single-Family Rentals (SFR): Traditional long-term rentals statewide.
- 2–4 Unit Multifamily: Common DSCR-financed assets. Review our 1–4 Unit program.
- Warrantable Condos: Eligible NYC buildings may qualify.
- Short-Term Rentals (STR): Airbnb properties in upstate zones.
- Mixed-Use: Properties with residential units above commercial space.
DSCR Loan Requirements in New York
To qualify for a DSCR loan New York investors should meet these core standards:
- DSCR Ratio: 1.0 minimum. 1.25+ for the best rates.
- Credit Score: 660 minimum. See all requirements.
- Down Payment: Typically 20%–25%.
- Reserves: 3–6 months of PITIA payments.
- Appraisal: Requires full appraisal plus 1007 Rent Schedule.
New York property taxes can be high. Factor these into your net income using our DSCR Calculator.
Structure Your Next New York Deal
Get a fast pre-qualification for your NY investment property without providing personal tax returns.
NYC vs. Upstate New York — Market Differences
Investing in New York City differs structurally from upstate markets.
New York City (5 Boroughs)
- Higher valuations often compress DSCR ratios.
- Strong rental demand but tighter cash flow margins.
- Co-ops are generally ineligible for DSCR loans.
Upstate New York (Buffalo, Albany, Rochester)
- Lower purchase prices often lead to stronger DSCR ratios.
- Higher rental yields relative to property cost.
- Growing demand in emerging investor-friendly hubs.
Where We Fund in New York
FAAS Funding provides nationwide coverage with deep expertise in the following New York regions:
| Region | Key Markets Covered |
|---|---|
| New York City | Brooklyn, Queens, Manhattan, Bronx, Staten Island |
| Long Island | Nassau County, Suffolk County, The Hamptons |
| Upstate & Western NY | Buffalo, Rochester, Syracuse, Albany, Yonkers, Westchester |
DSCR vs. Conventional Loans for NY Investors
Choosing the right financing in New York depends on your portfolio goals.
- Approval Basis: DSCR uses property cash flow; Conventional uses personal DTI.
- Documentation: DSCR requires no tax returns; Conventional requires full income proof.
- Portfolio Limit: DSCR is unlimited; Conventional is typically capped at 10 loans.
- Closing Speed: DSCR closes in 3-4 weeks; Conventional often takes 45-60 days.
Short-Term Rental Rules in New York
STR financing is available but highly regulated in New York.
NYC: Local Law 18 restricts short-term rentals to owner-occupied units. DSCR lenders generally cannot use STR income for NYC properties.
Upstate/Suburbs: Markets like the Catskills or Hudson Valley allow STRs with proper licenses. We use projected STR income to qualify these deals.
Brooklyn 2-Unit Investment Scenario
- Property: 2-unit rental in Bushwick, Brooklyn.
- Purchase Price: $1,100,000.
- Loan Amount: $825,000 (75% LTV).
- Monthly Rent: $6,800.
- Total PITIA: $6,250.
- Result: 1.09 DSCR (Qualifies).
Closing in an LLC is supported. Model your deal with our DSCR Calculator.
FAQ — DSCR Loans in New York
Can I get a DSCR loan in New York City?
Yes. We finance warrantable condos and 1–4 unit multifamily buildings across all five boroughs.
Do I need tax returns to qualify?
No. We qualify the loan based on the property’s rental income, not your personal tax returns.
What is the minimum credit score?
A score of 660 is standard, though we can sometimes accommodate 620+ with more equity.
Are upstate New York properties eligible?
Yes. We fund statewide, including Buffalo, Rochester, Albany, and Syracuse.
Can I use Airbnb income to qualify?
Yes, for eligible properties in upstate and suburban NY markets where STRs are legal.
Start Your New York DSCR Application
- No income verification required
- LLC closing supported
- 1–4 unit residential & mixed-use
- Fast, 3–4 week closings
Resources: DSCR Guide | Requirements | Calculator