How New City Financial underwrites single-family rental financing
A single-family rental is a home in form but an investment in function, and New City Financial finances it on that basis. Rather than asking for your W-2s or several years of personal tax returns, we qualify the loan on the property's own rental cash flow — the market or in-place rent measured against the mortgage payment as a debt-service coverage ratio (DSCR). Homes that carry themselves at a 1.0 DSCR or better, backed by a signed lease or credible market rent, are our core business. Vacancy and seasonality are read at the property level too, so a house between tenants or a seasonal rental is judged on its documented earning power rather than a single month's snapshot. That approach is what lets a self-employed investor, an LLC, or a partnership close on a rental home without the income documentation a conventional mortgage demands, and as a commercial lending firm every loan we write is business-purpose.
On terms, we lend up to 75% of value on loan amounts from $75,000 to $50 million — enough to cover a single starter rental or an entire portfolio of homes under one facility — with a 500 FICO floor and closings in under three weeks when the appraisal and title work cooperate. Fixed-rate structures over 3, 8, and 30 years, with no balloon payments, give buy-and-hold investors a debt cost they can underwrite for the full length of the hold, and we lend across 40-plus states. Any rates shown on this site are illustrative; your actual pricing depends on the home, its rents, your leverage, and your experience.
Single-family rental deals we finance
We finance the full range of single-family rental strategies. Turnkey acquisitions of homes already leased to a paying tenant are the simplest case, but value-add plays are just as welcome: buy a dated or vacant house, renovate it, place a tenant at market rent, and refinance the stabilized value into long-term debt. The asset class is broad — detached houses, condominiums, and townhomes held as rentals all qualify — and investors building scale can pledge several rental homes under a single underwriting rather than closing each one separately, which keeps a growing portfolio manageable. Both long-term leased houses and shorter-term seasonal rental income profiles are eligible where the income is documented.
Common uses are acquisition, rate-and-term refinance to replace a maturing or higher-cost loan or to roll a purchase-and-rehab into permanent financing, and cash-out refinance to free up equity for the next purchase or a renovation budget. Because these are business-purpose investment loans, the homes are held as non-owner-occupied rentals — we do not finance primary residences, and we work with investors and business owners rather than consumer homebuyers. If you are weighing whether a specific rental pencils, the fastest path is a short conversation about the lease or market rent, the property's cash flow, and your plan for the home.
