Non-QM Loans in New York
New York's diverse real estate market, from Manhattan luxury condos to upstate investment properties, requires flexible financing solutions. Non-QM loans serve self-employed professionals, real estate investors, and foreign nationals in one of America's most competitive markets.
$425,000
Median Home Price
$520,000
Avg. Loan Amount
68+
Licensed Lenders
12+
Major Markets
New York Real Estate Market
Why Non-QM loans are popular in New York
High-cost metro areas require jumbo Non-QM loan options
Large population of self-employed professionals and entrepreneurs
Strong co-op and condo market with specialized financing needs
Significant foreign national buyer activity in NYC
Multi-family investment opportunities throughout the state
Complex income structures common in finance and entertainment industries
Non-QM vs Conventional in New York
See how Non-QM mortgage options compare to conventional loans for New York borrowers
| Feature | Non-QM Loans | Conventional |
|---|---|---|
| Interest Rates | 6.75% - 8.75% | 6.25% - 7.25% |
| Min. Credit Score | 580-620 | 620-680 |
| Max DTI Ratio | Up to 50-55% | Up to 43-45% |
| Down Payment | 10-25% | 3-20% |
| Income Documentation | Bank Statements, 1099, P&L, Assets | W-2, Tax Returns, Pay Stubs |
| Max Loan Amount | Up to $5M | $1,149,825 |
| Closing Time | 21-30 days | 30-45 days |
| PMI Required | No (typically 10%+ down) | Yes (if < 20% down) |
* Rates and terms are approximate and vary by lender, credit profile, and property type. Data reflects typical New York market conditions as of 2026.
Popular Non-QM Programs in New York
These loan programs are especially popular among New York borrowers
Top New York Markets We Serve
Non-QM lending available throughout New York
New York Lending Regulations
New York is regulated by the Department of Financial Services (DFS). Mortgage lenders must be licensed under the New York Banking Law. New York has strict consumer protection laws and disclosure requirements. The state also has specific regulations for co-op financing.
New York Non-QM Loan FAQs
Common questions about Non-QM loans in New York
Can I get a Non-QM loan for a NYC co-op?
Yes, but co-op financing is more complex than condos. Not all Non-QM lenders offer co-op loans, but several specialize in NYC co-op financing. The co-op board must also approve the loan and buyer.
What are the loan limits for Non-QM in New York?
Non-QM loans in New York can exceed $3 million, especially important in high-cost areas like Manhattan, Brooklyn, and Westchester. Some lenders offer loans up to $5 million for qualified borrowers.
Are Non-QM loans available for multi-family properties in NY?
Yes! DSCR loans are popular for 2-4 unit properties and larger multi-family buildings. Investors can qualify based on the property's rental income rather than personal income.
Can foreign nationals buy property in New York with Non-QM?
Absolutely. New York is one of the most active markets for foreign national lending. Many lenders offer programs with 25-30% down for non-US citizens purchasing in NYC and surrounding areas.
How do New York's high property taxes affect my loan?
New York's property taxes are factored into your debt-to-income ratio and DSCR calculations. Lenders account for these costs when determining your maximum loan amount and qualifying ratios.
What are current Non-QM mortgage rates in New York?
Non-QM mortgage rates in New York typically run 0.5-1.5% higher than conventional rates. As of 2026, expect rates between 6.5% and 9.5% depending on the program, credit score, and down payment. Bank statement loans and DSCR loans in New York City and Buffalo tend to have competitive pricing due to higher lender competition.
What income documentation alternatives are accepted for Non-QM loans in New York?
Non-QM lenders in New York accept several alternative income documentation methods: 12 or 24 months of bank statements (personal or business), 1099 forms, profit and loss statements prepared by a CPA, asset depletion calculations, and rental income from DSCR analysis. This flexibility makes homeownership accessible for self-employed borrowers, freelancers, and investors throughout New York.
What property types qualify for Non-QM financing in New York?
Non-QM loans in New York cover a wide range of property types including single-family homes, condos (including non-warrantable), townhomes, 2-4 unit properties, and some commercial mixed-use properties. Investment properties, vacation homes, and primary residences all qualify. In markets like New York City and Buffalo, multi-unit properties are especially popular for DSCR loans.
What is the minimum down payment for a Non-QM loan in New York?
Most Non-QM programs in New York require a minimum down payment of 10-20%, though some lenders offer options as low as 10% for primary residences with strong compensating factors. DSCR loans for investment properties typically require 20-25% down. With the median home price in New York around $420,000, this means a down payment starting at approximately $63,000 to $84,000.
Can I refinance into a Non-QM loan in New York?
Yes, Non-QM refinancing is available in New York for both rate-and-term and cash-out refinancing. Cash-out refinances allow up to 75-80% LTV in most cases. This is particularly popular among New York homeowners who want to tap equity without providing traditional income documentation, or investors looking to pull equity from rental properties in New York City or Buffalo to fund additional purchases.
How do DSCR loans work for New York investment properties?
DSCR (Debt Service Coverage Ratio) loans in New York qualify borrowers based on the rental income of the property rather than personal income. The property's monthly rental income must typically cover 1.0x to 1.25x the monthly mortgage payment (PITI). No employment verification, tax returns, or W-2s are required. This makes DSCR loans ideal for scaling a rental portfolio in New York's growing markets.
What happens if I have a recent bankruptcy or foreclosure in New York?
Non-QM lenders in New York offer programs for borrowers with recent credit events. Many programs allow financing just 1-2 years after a bankruptcy discharge (compared to 4-7 years for conventional loans) and 2-3 years after a foreclosure. Expect to provide a larger down payment (typically 20-25%) and accept a slightly higher interest rate, but homeownership is still achievable.
Are Non-QM loans available for foreign nationals buying property in New York?
Yes, several Non-QM lenders in New York offer foreign national loan programs. These loans do not require a U.S. Social Security number, credit history, or visa. Foreign nationals can purchase investment properties or vacation homes in New York with as little as 25-30% down. Popular areas for foreign national buyers include New York City and Buffalo.
What is the maximum loan amount for Non-QM loans in New York?
Non-QM loan amounts in New York typically range from $100,000 to $3 million, with some lenders offering up to $5 million for jumbo Non-QM programs. There are no conforming loan limits to worry about since Non-QM loans are not sold to Fannie Mae or Freddie Mac. High-value properties in New York City and Buffalo can be financed with these higher limits.
How does a bank statement loan work for self-employed borrowers in New York?
Bank statement loans in New York allow self-employed borrowers to qualify using 12 or 24 months of personal or business bank statements instead of tax returns. The lender calculates your income by averaging deposits over the statement period, typically using 50-100% of deposits for business accounts and 100% for personal accounts. This is ideal for New York business owners who maximize tax deductions.
What are the DTI requirements for Non-QM loans in New York?
Non-QM loans in New York generally allow higher debt-to-income (DTI) ratios than conventional loans. Most programs accept DTI ratios up to 50%, and some lenders go as high as 55% with compensating factors such as a larger down payment, significant reserves, or a higher credit score. DSCR loans do not use personal DTI at all, focusing instead on the property's cash flow.
Do I need reserves to qualify for a Non-QM loan in New York?
Most Non-QM lenders in New York require 3-12 months of mortgage payment reserves in liquid assets after closing. The exact requirement depends on the loan program, property type, and credit profile. Investment property loans and jumbo Non-QM loans typically require more reserves (6-12 months), while primary residence loans may require as few as 3-6 months.
How does Non-QM lending compare to conventional mortgages in New York?
Non-QM loans in New York differ from conventional mortgages in several key ways: they accept alternative income documentation (bank statements, 1099s, asset depletion), allow lower credit scores (as low as 580 vs. 620+ for conventional), permit higher DTI ratios (up to 50-55%), and have no conforming loan limits. The trade-off is slightly higher interest rates (0.5-1.5% above conventional) and larger down payment requirements (typically 10-25% vs. 3-5% for conventional).
New York Non-QM Lending Articles
In-depth guides and market analysis for New York borrowers and investors
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