New York DSCR Loans for STR Financing

Grow Your Portfolio with DSCR Loans

Whether you're investing in STRs in the Hudson Valley, apartments in New York City, or rentals in upstate markets like Buffalo or Rochester, our DSCR loans  offer New York investors the flexibility and competitive rates they need to grow. These loans qualify you based on the property’s income—not your W-2s, tax returns, or credit score. We assess whether the asset can cash flow and support the loan independently. With high demand across both metro and vacation markets, New York is ideal for scalable real estate strategies. DSCR loans make approval faster and expansion easier by focusing on performance, not paperwork.

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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 York real estate investors?

A DSCR loan (Debt Service Coverage Ratio loan) is a financing method that allows investors to qualify based on the income a property generates rather than their personal financial background. Lenders evaluate whether the cash flow from the rental can support the full loan payment, including taxes and insurance. This structure is ideal for investors with complex tax situations, multiple properties, or STR-heavy portfolios. In New York, where opportunities range from NYC to upstate markets like Buffalo and the Hudson Valley, DSCR loans help investors grow without being limited by standard mortgage rules.

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

In New York, DSCR is calculated by dividing a property's net operating income (NOI) by its annual debt service, which includes the mortgage, taxes, and insurance. For example, if a New York rental earns $132,000 in NOI and carries $110,000 in yearly debt, the DSCR is 1.20. That 20% margin helps lenders determine loan viability. While a 1.00 DSCR may meet minimum lender requirements, most New York institutions prefer 1.20 or higher—especially in competitive markets like NYC, Buffalo, and the Hudson Valley. Understanding how DSCR works in New York gives investors an edge when pursuing financing for short- or long-term rentals.

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

In New York, a good DSCR ratio typically starts at 1.25, especially in high-cost or tightly regulated markets. While a 1.00 DSCR may be technically acceptable, lenders operating in cities like New York City, Buffalo, or the Hudson Valley often demand stronger ratios to offset risk. A 1.25 DSCR in New York shows that the property earns 25% more than it needs to service the loan, which can significantly improve approval odds and reduce reserve requirements. Understanding what qualifies as a good DSCR in New York is essential for navigating the state’s complex lending environment.

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 York, DSCR loans are approved based on the income generated by the property—not the borrower’s financial background. New York lenders commonly assess rental income using leases, STR earnings, or appraised market rents. That income is then compared to the property’s debt service to calculate the DSCR. A ratio of at least 1.00 is required by most New York lenders, though higher may be expected in high-cost markets. DSCR loans in New York are popular with investors who prioritize asset-based lending. Understanding how rental income is evaluated in New York helps you qualify without income verification barriers.

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

In New York, lenders often require a minimum DSCR of 1.00, but in most cases, a 1.25 or higher is expected due to high property values and regulatory scrutiny. Some New York lenders may consider a DSCR as low as 0.75, but this is rare and requires strong compensating factors. DSCR loans in New York are common in markets like Brooklyn, Manhattan, and Buffalo, where rental income plays a central role in lending decisions. Investors in New York benefit from higher DSCRs that reduce perceived lender risk. Understanding New York’s DSCR benchmarks helps position your deals for faster, more favorable approval.

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. In New York, where property values are high and regulations are strict, DSCR loans help investors qualify using rental performance instead of tax returns. From Brooklyn to Buffalo, New York borrowers appreciate the ability to skip personal financials and move quickly on time-sensitive deals. DSCR lending gives New York investors the edge in a competitive market.

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