Investment property loans in New York

What a non-owner-occupied loan is

A non-owner-occupied property is one the borrower does not live in: a house bought to renovate and sell, a two-family leased by the year, a condo held as a rental, or a lot where a building will go up. Lenders treat these as business-purpose loans, and the rules differ from the mortgage on a primary residence.

New York Fix and Flip Loans lends only on non-owner-occupied property. We are the New York division of Optimus Capital Corp, a nationwide lender that works only with real estate investors, and the division is run by Andrew Shanti, who has worked in lending and real estate since 2005 as a principal, executive and investor.

How to choose a lender for a New York investment property

The right lender depends on what you plan to do with the property. Three kinds of lender finance investment real estate, and each one approves the loan on something different.

Questions to ask before you pick a lender

New York property comes with costs and rules that some lenders handle poorly. These questions sort out quickly who can close your deal.

• Will you fund the whole renovation? We finance up to 100% of the rehab budget at a 720+ score, paid in draws as work is finished.
• Do you account for the mortgage recording tax? New York City charges a mortgage recording tax when a loan is recorded. On one- to three-family homes and condos the borrower’s share is about 1.8% of a loan under $500,000 and 1.925% at $500,000 or more. On commercial property and buildings of four or more units it is 2.8% at $500,000 or more. Outside the city the rate is lower and varies by county.
• Do you account for transfer and mansion taxes? On a New York City sale the seller customarily pays the city transfer tax, 1% of the price up to $500,000 and 1.425% above that on one- to three-family homes and condos, and 1.425% or 2.625% on other property. The seller also pays the state transfer tax of 0.4%, which rises to 0.65% on homes of $3 million or more and on other property of $2 million or more. Buyers of one- to three-family homes and condos at $1 million or more pay the mansion tax, starting at 1%.
• Can you close with tenants in place? Many apartment buildings of six or more units built before 1974 are rent stabilized, and since 2019 state law has made it very hard to deregulate an apartment or raise the rent for improvements. Good Cause Eviction, in effect in New York City since 2024, limits rent increases and evictions in most market-rate rentals. Exemptions include owners of 10 or fewer units statewide, buildings first occupied on or after January 1, 2009, and units renting above 245% of fair market rent.
• Do you understand the rental rules? New York City’s Local Law 18 allows a short-term rental only when the host lives in the home, is present during the stay, has registered with the Mayor’s Office of Special Enforcement, and hosts no more than two guests. Renting out a whole house or apartment for less than 30 days is not allowed, so investor-owned property in the city is underwritten on long-term rent. Towns on Long Island and in Westchester set their own rules, and many require a permit or limit short stays.
• Do you lend on co-ops? Co-op apartments are shares in a corporation, not real property, and boards set their own rules on investors, subletting and financing. Investor loans like ours are made on one- to four-family homes, condos, multifamily and mixed-use buildings, not on co-op shares.
• Will you check my personal income? We do not. There are no tax returns and no employment or debt-to-income review.
• Can I close in an LLC, and from out of state? Yes. We lend to LLCs and to out-of-state owners, and to foreign nationals on rental loans.
• How fast can you close? Rental loans take about 30 days, appraisal included. Fix and flip loans average up to 21 days and can close in about 7 days once title and insurance are ready.

What we finance in New York

• Fix and flip loans: up to 90% of the purchase price and 100% of the rehab at a 720+ credit score.
• DSCR rental loans for two- to four-family homes, condos and small multifamily: up to 85% loan-to-value to buy and 80% on a cash-out refinance, fixed for 5 to 30 years.
• Ground-up construction loans: up to 90% of cost for experienced builders, with the lot included.
• Mid-rehab, portfolio and commercial loans for projects that need capital to finish, groups of rentals, and multifamily or mixed-use property.

For neighborhood notes and local rules, see Brooklyn, Queens and our other market pages.