New Jersey DSCR Loan Lenders for Rental Property

RCN Capital, a national direct private lender, funded a $224,250 DSCR refinance loan for an SFR long-term rental in Willingboro, NJ. The property value was appraised at $345,000 so our loan-to-value was 65%. We paid off a previous loan balance of $200,200 and provided some cash-out. The property was receiving a monthly rent of $2,600 which was $250 below the market rates per the appraiser’s estimate ($2,850). The 1,684-square-foot subject property was in excellent condition and tenant-occupied at closing. The Borrower had excellent credit with a mid-score of 752 and bank statements that reflected sufficient funds to meet our reserve requirement. The loan was structured and priced in accordance with our qualification model. The DSCR was 1.19. The interest rate was fixed at 7.15% with amortized payments, and we charged 4% origination points. The loan term was set at 30 years. This DSCR refinance loan was funded in December 2023.

RCN Capital, a national direct private lender, funded a $373,193 1st lien position long-term rental loan for the acquisition of a 2-unit rental property in Brigantine, New Jersey. We funded 51% of the $663,000 purchase price, while the Borrower contributed 49% cash at closing. The Borrower is an experienced investor (self-employed). The duplex is eligible to get monthly market rates as per the appraiser’s estimate of $3,600/Month. The major Sponsor on the loan had excellent credit with a mid-score of 773 and bank statements that reflected sufficient liquidity to close the deal. The loan was structured and priced in accordance with the qualification model. The total loan amount is 50.8% loan-to-value and 56.3% loan-to-cost with a 1.10 DSCR. The subject property, located in a vacation area, was in excellent condition and is approximately 1,884 square feet. The interest rate was fixed at 7.14% with amortized payments, and we charged 1.5% origination points. The loan term was set at 30 years. This DSCR long-term rental loan was funded in August 2023.

RCN Capital, a national direct private lender, funded a $345,600 1st lien position long-term rental loan for the acquisition of a 3-unit residential investment property in Rahway, New Jersey. We funded 69% of the $432,000 purchase price, while the Borrower contributed 31% cash at closing. The subject property was being leased for $5,533 per month which was above market rate per the appraiser’s estimate of $4,300. It was appraised for $500,000 As-Is and Collateral Desktop Analysis confirmed the value was acceptable. The Sponsor had a mid-score of 766 and bank statements that reflected sufficient liquidity. The loan was structured and priced in accordance with the qualification model. The total loan amount was 80% loan-to-cost and 69.12% loan-to-value with a 1.29 DSCR. The Borrower plans to hold the property as a long-term rental. The subject property was in good condition. It was is approximately 1,872 square feet. The interest rate was fixed at 7.48% with amortized payments and we charged 3% origination points. The loan term was set at 30 years. This DSCR loan was funded in May 2023.