New York DSCR Loans

Harpoon Capital's minimum credit score for a DSCR loan in New York is 600. Most DSCR lenders set the bar at 640, 660 or even 700, so a 600 floor opens the door for investors with a blemish on their credit. Have a recent foreclosure, short sale or bankruptcy? You may still have options, depending on how long ago it happened and your overall credit profile.

As little as 15% down. Harpoon Capital offers up to 85% loan-to-value (LTV) on qualifying New York purchases and rate-term refinances, using true DSCR qualification with no income documentation. Many investors put 20% to 25% down, and your exact down payment depends on your credit score, DSCR ratio and property type. Short-term rentals can reach 85% LTV too, using our hybrid option that supplements the property's income.

No. A DSCR loan qualifies primarily on the income the property generates, not your personal income. Harpoon Capital does not require tax returns, W-2s, pay stubs or employment verification, and your debt-to-income (DTI) ratio is never calculated. That makes DSCR financing a strong fit for self-employed investors, full-time investors and anyone whose tax returns understate what they actually earn.

The DSCR ratio is the property's monthly rent divided by its monthly PITIA (principal, interest, taxes, insurance and any HOA dues). A property renting for $2,400 with a $2,000 PITIA has a 1.20x DSCR. Most lenders require at least 1.00x, but Harpoon Capital has no minimum DSCR: ratios between 0.75x and 0.99x can still reach 80% LTV, and true "no-ratio" loans below 0.75x can reach 75% LTV. That flexibility helps in higher-priced New York markets where rent doesn't fully cover the payment yet.

Most DSCR loans carry a prepayment penalty, but you choose the structure. Common options include descending penalties like 5/4/3/2/1 or 3/2/1, flat fixed penalties like 5/5/5 that stay the same each year, and "Cali-style" penalties, which charge six months of interest only on amounts above the 20% of the balance you can prepay freely each year. You can also choose a shorter penalty or no prepayment penalty, with your rate priced to the option you pick. In New York, all of these structures are allowed on DSCR loans, since state limits apply only to consumer and owner-occupied mortgages.

Usually 2 to 6 months of payments, and sometimes none at all. Most Harpoon Capital DSCR loans on New York properties call for 2 to 6 months of PITIA in liquid reserves, with up to 12 months on some larger loans. On loans up to $1.5 million, we offer an option that waives the reserve requirement completely. We can also count crypto, retirement and business accounts toward reserves.

Yes. Closing in an LLC, corporation, partnership or trust is standard on Harpoon Capital DSCR loans, and it's one of the biggest advantages over conventional financing. Every DSCR loan needs a guaranty, but we're flexible: in some cases a single guarantor owning as little as 20% of the LLC can sign, and non-recourse options are available even for majority owners. Many New York investors use an LLC to separate rentals from personal assets and for liability protection.

Most Harpoon Capital DSCR loans close in 15 to 30 days. Because there's no personal income to verify, timing mostly depends on the appraisal, title work and insurance. New York closings are run by attorneys, and purchase timelines often depend on the attorney contract review process, so loop in your attorney early. Having your entity documents, insurance quote and lease or short-term rental projections ready speeds things up.

DSCR loan rates move with the market, so for today's pricing, check our current DSCR loan terms or request a free quote. Your actual rate depends on your credit score, LTV, DSCR ratio, loan size, property type and prepayment penalty choice. DSCR rates typically run higher than owner-occupied mortgages because they're business-purpose investor loans, but they come with no income documentation, LLC closings and no cap on the number of properties. A longer prepayment penalty, a lower LTV or a higher DSCR usually lowers your rate.

Yes. Short-term rentals are one of the most common uses for DSCR financing, and Harpoon Capital finances Airbnb and VRBO purchases and refinances in New York. We qualify the property on its short-term rental income rather than only a long-term rent estimate, which matters in vacation markets like the Catskills and the Finger Lakes. Medium-term rentals for travel nurses and corporate stays are eligible too.

Yes, at 100% of projected income. Most DSCR lenders cut short-term rental projections or require 12 months of booking history first, but Harpoon Capital can qualify your New York STR using 100% of projected revenue from AirDNA, the appraisal or other accepted sources. That means a brand-new Airbnb with no booking history can qualify on day one. If the property already has bookings, trailing 12-month actuals can be used instead.

No. Harpoon Capital does not require a short-term rental permit or license to close a DSCR loan in New York. You're still responsible for following local rules once you operate, and they vary widely. New York counties now run short-term rental registries under a 2025 state law, and New York City only allows hosted stays with no more than two paying guests, so whole-home STRs there aren't legal. Upstate markets like the Catskills and Finger Lakes set their own town-by-town rules. Check zoning, HOA rules and any local registration before you buy.

For most investors, a DSCR loan is the better long-term fit. A second-home loan can offer 10% down, but it limits how you operate: rental use is generally capped at about 180 days a year, professional property managers usually aren't allowed and you can't close in an LLC. A DSCR loan is built for investment use, so you can rent year-round, hire a manager, hold title in an LLC and finance as many New York short-term rentals as you want, with down payments starting at 15% with Harpoon Capital.

Yes. Harpoon Capital finances warrantable and non-warrantable condos, as well as condotels, which many DSCR lenders won't touch. Condo loans usually require a questionnaire completed by the HOA, and the association's rental rules matter as much as the lender's: some New York buildings restrict or ban short-term rentals, so confirm the bylaws before you buy.

Yes. Harpoon Capital can finance the whole BRRRR cycle (Buy, Rehab, Rent, Refinance, Repeat) in New York: a fix-and-flip loan for the purchase and renovation, then a DSCR cash-out refinance once the property is rented or listed as a short-term rental. Our 80% LTV cash-outs, above the 75% cap most DSCR lenders use, and our no-seasoning options let you pull out more capital, sooner. It's a popular strategy in New York markets like Buffalo and Rochester.

As soon as the rehab is done. Harpoon Capital offers true no-seasoning DSCR cash-out refinances, so you don't have to wait the 6 to 12 months many lenders require, plus additional programs that allow a cash-out after just 3 months of ownership. Getting to the refinance faster cuts the carrying costs on your rehab loan and lets New York investors recycle capital into the next deal.

The appraised value. Harpoon Capital bases BRRRR cash-out refinances on the property's current appraised value, including the value you added with the rehab, not just your purchase price, even on our no-seasoning and 3-month options. Many lenders cap you at purchase price plus documented rehab costs until you've owned the property for 6 to 12 months. You can borrow up to 80% LTV with no maximum cash-in-hand limit, and cash-out proceeds aren't taxable income.

Yes. Refinancing a hard money, bridge or fix-and-flip loan into a 30-year DSCR loan is one of the most common transactions we do in New York. To simply pay off the short-term loan, a rate-term refinance goes up to 85% LTV; to pull equity out, a cash-out refinance goes up to 80% LTV based on the appraised value. Vacant properties are eligible too, so you don't have to wait for a tenant. Have your rehab scope and receipts ready to support the appraisal.

No to both. You don't need to live in New York or have landlord experience. Harpoon Capital lends to out-of-state investors and offers programs for first-time investors, and even for first-time homebuyers who have never owned real estate before, including renters. Many New York investors live in another state and work with a local property manager.

New York is one of the more tenant-friendly states. New York City has rent stabilization and Good Cause Eviction protections, and cities including Rochester, Albany and Binghamton have opted into Good Cause, which limits no-cause evictions and large rent increases on covered units. Statewide, security deposits are capped at one month's rent and landlords must serve a 14-day rent demand before filing for nonpayment. Many small landlords are exempt from Good Cause, so check how your property is covered.