DSCR Loans in New York: What Investors Should Know
A DSCR loan qualifies a rental on its rent rather than your personal income, and each lender sets its own terms. Lenders closed 21,373 loans on one- to four-unit investment properties in New York in 2025, the fifth most of any state, according to HMDA data. About 89% were flagged by the lender as primarily for a business purpose.
Last updated October 21, 2026New York investor lending in 2025
New York's investor loans had a median near $405,000. About 59% were purchases and 38% refinances, including 26% that were cash-out refinances. Investor loans made up about 9% of all the loans reported under HMDA in the state. These counts cover all investor lending, not DSCR loans alone. See investment property loans by state for every state.
Where investors borrowed
The 14 New York counties with the most investor loans in 2025. Kings County led with 2,393, ahead of Queens County with 2,267. Medians ran from near $145,000 in Monroe County to near $835,000 in Kings County, and purchases made up anywhere from 49% of investor loans in Bronx County to 70% in Richmond County.
| County | Investor loans closed | Median loan, about | Business-purpose | Purchase |
|---|---|---|---|---|
| Kings County | 2,393 | $835,000 | 92% | 50% |
| Queens County | 2,267 | $635,000 | 90% | 64% |
| Suffolk County | 2,181 | $475,000 | 88% | 59% |
| Nassau County | 1,503 | $555,000 | 85% | 64% |
| Monroe County | 1,154 | $145,000 | 91% | 57% |
| Erie County | 1,154 | $175,000 | 88% | 61% |
| Orange County | 1,106 | $335,000 | 93% | 59% |
| Rockland County | 924 | $585,000 | 94% | 60% |
| Bronx County | 839 | $645,000 | 92% | 49% |
| Westchester County | 744 | $535,000 | 89% | 58% |
| Onondaga County | 605 | $155,000 | 79% | 68% |
| Albany County | 561 | $205,000 | 93% | 61% |
| Richmond County | 552 | $515,000 | 88% | 70% |
| New York County | 521 | $745,000 | 84% | 57% |
617 New York investor loans had no county in the public file and aren't shown.
How a DSCR loan works
The lender divides the property's rent by its full payment of principal, interest, taxes, insurance and any association dues. The DSCR programs we read publish limits that mean 15% to 25% down and credit minimums from 620 to 700. See DSCR loan questions, answered and what affects DSCR loan rates.
Short-term rentals in New York City
New York City adopted Local Law 18, its Short-Term Rental Registration Law, in January 2022. The city says hosts must register with the Mayor's Office of Special Enforcement, and booking platforms such as Airbnb and VRBO can't process transactions for unregistered short-term rentals.
Registration doesn't make an investment apartment a lawful nightly rental. The city says a host must be a natural person who permanently occupies the unit to register; that an entire apartment or home in a permanent residential building can't be rented to visitors for fewer than 30 days, even by its owner; and that short-term rentals are allowed only when the host stays in the same unit with no more than two guests. So don't count on whole-unit nightly income from a New York City rental you don't live in. Ask the lender to qualify the property on long-term rent, and confirm legal use before you count any short-term income. These are New York City's rules, not statewide ones. See DSCR loans for Airbnb and short-term rentals.
What to ask a lender
- What ratio, down payment and credit score do you require on a New York rental?
- Will you use the appraisal's market rent or my lease?
- Is there a prepayment penalty, and for how long?
- What rate, points and fees will you put in writing?
How to read these numbers
They're loans that closed in 2025, from every lender reporting under HMDA, not today's offers and not FreeRateUpdate's activity. They count only loans the lender reported as closed-end and not a reverse mortgage; loans reported as exempt from either field are left out. Loan amounts in the public file are rounded to the midpoint of a $10,000 range, so medians are approximate. Business-purpose is the lender's own HMDA flag, not a DSCR label.
| Investor loans closed | 21,373 (fifth most of any state) |
|---|---|
| Median loan | About $405,000 |
| Business-purpose share | About 89% |
| Purchase vs. refinance | 59% purchase, 38% refinance |
| Most investor loans | Kings, Queens, Suffolk |
Related questions
Sources
- https://ffiec.cfpb.gov/data-browser/
- https://ffiec.cfpb.gov/documentation/publications/loan-level-datasets/lar-data-fields
- https://ffiec.cfpb.gov/documentation/publications/modified-lar/resources/data-dictionaries/mlar-dd-2018-onward
- https://www.nyc.gov/site/specialenforcement/registration-law/registration.page
- https://www.nyc.gov/site/specialenforcement/registration-law/tips-for-hosts.page
- https://www.kiavi.com/loans/dscr
- https://www.griffinfunding.com/non-qm-mortgages/dscr-loans/
- https://angeloakms.com/programs/investor-cash-flow-mortgage-program/
Sourced from licensed loan officers and brokers in the FreeRateUpdate network.
Educational information only, not individualized financial or legal advice. Program details and rates change; verify current terms with a licensed loan officer before making a decision.