New Jersey DSCR Loans for STR Financing

Grow Your Portfolio with DSCR Loans

Whether you're purchasing STRs in Jersey Shore towns, long-term rentals in Newark, or multifamily homes in Atlantic City, our DSCR loans offer New Jersey investors the flexibility and competitive rates needed to grow. DSCR loans qualify you based on rental income, not your personal income or credit score. We focus on whether the property itself can cash flow and support the loan. With high rental demand in both urban and coastal markets, New Jersey is well-suited for real estate expansion. Our streamlined, asset-based lending process helps you scale without the hurdles of traditional underwriting.

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How to qualify

To obtain a quote, we will need the following information:

Property Value and

 Purchase Price


Down Payment

Amount


Credit Score



 Asset Types

  • Single Family Homes
  • Townhomes
  • Condos
  • 2 - 4 Units (Duplex, Triplex, Quadplex)
  • Multi-Family: 5 - 8 Units
  • Mixed-Use: 2 - 8 Units
  • Multi-Family: 9+ Unit



Loan Terms


  • Loan Sizes: $100k up to $3.5 Million (Larger loan sizes available on a case by case basis)
  • Purchase LTV: Up to 85%
  • Rate & Term Refinance LTV: Up to 80% 
  • Cash Out Refinance LTV: Up to 80%
  • Amortization: 30 Year % 40 Year Amortization Options Available
  • Term Lengths: 5/6 ARMs, 7/6 ARMs, 10 Year Interest Only, 30 Year Fixed & 40 Year Fixed
  • Floor Rate: 5.50% (subject to change daily due to market volatility)
  • Full Recourse with personal guarantee required for all borrowers with majority ownership (typically 20%+ or 25%+ if closing in an Entity)
  • DSCR Requirement: 1.00x or greater depending on loan size and property type. Sub-1.00x DSCR and NO DSCR options available.
  • Vesting: Lending to Individuals, LLCs, and Corporations. Trusts Allowable on a Case by Case Basis.
  • Average Time to Close: 14 to 35 days

Wondering if you qualify for investment property financing in your area?


We offer lending services in all 50 states!

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Frequently Asked Questions

What is a DSCR loan and how does it work for New Jersey real estate investors?

A DSCR loan (Debt Service Coverage Ratio loan) is ideal for real estate investors who want to qualify based on property income rather than personal tax returns, employment records, or credit scores. If the rental income can fully cover the property's debt service, lenders may approve the loan with minimal documentation. This flexible structure is especially helpful for LLC-based investors or those with multiple properties. In New Jersey, where demand for rentals in markets like Newark, Jersey City, and Atlantic City is strong, DSCR loans provide a fast, efficient way to finance STRs and long-term assets.

How is DSCR calculated in a typical loan scenario for New Jersey investors?

In New Jersey, DSCR is calculated by dividing a property's net operating income (NOI) by its total annual debt obligations, including mortgage, taxes, and insurance. For example, if a New Jersey rental earns $120,000 in NOI and its annual debt service is $100,000, the DSCR would be 1.20. That indicates the property generates 20% more income than it costs to finance. Most New Jersey lenders require at least a 1.00 DSCR, but 1.20 or higher is preferred in markets like Newark, Jersey City, and the Jersey Shore. Understanding DSCR in New Jersey helps investors assess a property's cash flow strength and qualify for better financing terms.

What is considered a good DSCR ratio when applying for financing?

In New Jersey, most lenders view a DSCR of 1.20 as a solid benchmark for approval. Although a 1.00 DSCR might qualify under basic guidelines, a higher ratio indicates lower risk and greater income reliability. A 1.20 DSCR in New Jersey may result in lower rates or fewer reserve requirements. Whether you're investing in Newark, Jersey City, or the Shore, understanding what qualifies as a good DSCR in New Jersey helps you align your financing strategy with the expectations of lenders and the realities of the local market.

Can I qualify for a DSCR loan if my personal income is limited?

Yes, you can qualify for a DSCR loan even if your personal income is limited. DSCR loans, often referred to as Airbnb loans when used for short-term rental properties, are designed to approve borrowers based on the income the property generates—not personal W-2s, tax returns, or debt-to-income ratios. Lenders calculate the property's debt service coverage ratio to determine if the income is sufficient to support the loan. As long as the DSCR meets the required threshold—usually 1.00 or higher—you can often be approved regardless of personal income. This makes Airbnb loans ideal for self-employed investors, business owners, or anyone scaling a rental portfolio without relying on traditional underwriting standards.

How does a lender evaluate rental income when approving a DSCR loan?

In New Jersey, DSCR lenders focus on the rental income a property generates—not the borrower’s personal income. New Jersey investors are required to submit documents like lease agreements, STR income history, or market rent appraisals to verify earnings. That income is then used to calculate the DSCR by dividing it by the property’s annual loan obligations. If the DSCR is at least 1.00, most New Jersey lenders will consider the loan. DSCR loans in New Jersey give investors more flexibility when personal income is complex or limited. Understanding how rental income is evaluated in New Jersey helps you qualify based on the asset’s performance.

What’s the minimum debt service coverage ratio required for approval?

In New Jersey, DSCR lenders typically require a minimum ratio of 1.00 to approve a loan, confirming that the property’s income covers its debt service. Some New Jersey lenders may allow DSCRs as low as 0.75 in rare cases with strong reserves or borrower experience. However, a DSCR of 1.25 is considered ideal in New Jersey, especially in expensive or competitive markets like Jersey City, Hoboken, or Newark. DSCR loans in New Jersey are especially beneficial for investors working with STRs or multifamily properties. Understanding New Jersey’s DSCR minimum helps borrowers structure applications that align with lender expectations and improve approval odds.

Who should consider using a DSCR instead of a traditional loan?

These loans are perfect for self-employed individuals, LLCs, and investors managing multiple properties. DSCR loans in New Jersey help borrowers qualify using rental income instead of personal financial records, making them ideal for high-density markets like Jersey City and Newark. New Jersey investors benefit from quicker closings and fewer paperwork requirements, allowing them to scale more efficiently in competitive real estate markets.

Expanding your rental portfolio beyond New Jersey? We also offer financing in Pennsylvania and Delaware , making it easy to scale across the Mid-Atlantic with the same asset-based approval process.