New York Investment Property Loans
How lending actually works in New York, including the local rules that change your loan.
Key terms
- Fix and flip
- Buy, renovate and resell
- DSCR rental
- Long term hold qualified on rent
- Bridge
- Fast acquisition ahead of permanent financing
- New construction
- Ground up builds
- Cash out refinance
- Releasing equity to redeploy
We are based in New York and it is our home market. It is also the market where conventional financing fails investors most often, because the property types, the price points and the regulatory environment fall outside standard guidelines more frequently than anywhere else we lend.
Judicial foreclosure and the longest timelines in the country
New York is a judicial foreclosure state and the process is among the slowest in the nation. This shapes lender appetite and pricing across the state. It also means that any acquisition involving distressed property should be planned with a great deal of schedule slack.
Rent regulation is an underwriting question
Parts of the New York City housing stock are subject to rent stabilisation. A stabilised unit has a legal rent that may sit well below market, and that legal rent, not the market rent, is what a lender will use for coverage purposes.
This is the single largest surprise on New York rental files. A building that appears to work on projected market rents can fail entirely once the actual regulated rents are used. Establish the regulatory status of every unit before you underwrite the building, not after.
Mixed use and small multifamily
Much of the investable stock in the outer boroughs is small multifamily or mixed use with ground floor commercial. These property types frequently fall outside conventional residential guidelines, which is precisely where asset based lending and business purpose programs are useful. Loan sizes here run higher than the national average, and we place up to $25 million and above.
Mortgage recording tax
New York charges a mortgage recording tax that varies by county and is meaningful on larger loans. In New York City it is a material closing cost that should be in your model from the beginning. Investors from other states routinely omit it and are surprised at the closing statement.
Loan programs available in New York
We are most active in New York City, Brooklyn, Queens, Buffalo and Yonkers, and we lend throughout the state. Loan sizes run from $100,000 to $25 million with approval decisions typically inside 72 hours.
Other state guides are on the where we lend page.
Frequently asked questions
Do you lend on investment property in New York?
Yes. New York is our home market. We place fix and flip, DSCR rental, bridge, new construction and cash out refinance financing across the state including all five boroughs, Buffalo and Yonkers.
How does rent stabilisation affect a DSCR loan?
Lenders use the legal regulated rent rather than market rent when calculating coverage on a stabilised unit. Since regulated rents can sit well below market, a building can fail coverage even though projected market rents look strong. Confirm regulatory status before underwriting.
What is the New York mortgage recording tax?
A tax charged on recording a mortgage, varying by county and significant in New York City. On larger loans it is a material closing cost and should be modelled from the outset.
Ready to fund your next deal?
Approval within 72 hours. Close in 5 to 10 business days.
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