New Jersey DSCR Loans 2026: 7,540 Loans, 130 Lenders, Rates

Where New Jersey's DSCR loans are: four markets in one small state

New Jersey's 7,540 loans are 4.9% of the 154,354 DSCR-type loans on our national DSCR lender ranking (our arithmetic), and about three-quarters of our New York count of 9,885. Essex County (1,069 loans) is the largest place, ahead of Mercer (695), Ocean (632), Hudson (533) and Passaic (507). Another 320 loans (4.2%) carry no county in the file.

DSCR-type loans by region, 2025 (our grouping of HMDA county codes)

The groupings are ours and are listed in the data file. The map explains little of the rate and a lot of the loan. Every region's median note rate is within 0.125 points of the others (7.25% to 7.375%), but the median loan runs from $205,000 in the Mercer and Philadelphia-side counties to $505,000 in the north urban core, and the north is where the multi-unit buildings are: 67.9% of its loans are on two- to four-unit properties against 14.3% at the shore (our arithmetic). The 320 loans with no county are mostly from three lenders that report no county on any loan (RCN Capital, Investor Mortgage Finance and Rain City Capital), which is why 78.8% of them went to entities.

The 12 largest counties by DSCR-type loans, 2025

Two patterns. First, DSCR lending is the main investor product in Essex (58.0% of conventional first-lien investor loans) and Passaic (57.7%), and a smaller share in Middlesex (30.2%), Monmouth (34.7%) and Bergen (36.1%) where investors use other loan types more. Cape May has the lowest share of the 21 counties (19.4%, 119 of 612). Second, the price of the loan differs more than the rate: Camden County's median is $175,000 and Mercer's $205,000, against $555,000 in Hudson and $505,000 in Bergen. Which lender dominates also changes by place: Constructive Loans leads Essex, Champions Funding leads Mercer, Passaic and Union, and RF Renovo and Kiavi are the largest in Camden and Burlington counties. Small-county medians rest on a few hundred loans; read them as direction.

Buildings: four in ten are two to four units

DSCR-type loans by number of units, 2025

3,002 of the 7,540 loans (39.8%) were on two- to four-unit buildings, and the median rate is identical for every unit count (7.375%) while the median loan climbs from $275,000 for one unit to $605,000 for four. For the minimum ratios lenders apply to small multifamily, see DSCR loan requirements.

The ranking: who makes DSCR-type loans in New Jersey

New Jersey's list is led by broker-fed non-bank lenders, but it is less concentrated than New York's: the top 5 made 2,242 loans (29.7%), the top 10 3,597 (47.7%) and the top 20 5,205 (69.0%). 25 lenders made 100 or more, 76 made 10 or more and 21 made exactly one (our arithmetic). Across the state 4,740 loans (62.9%) were not submitted directly to the lender, which is how a New Jersey mortgage broker reaches most of them.

Top 12 New Jersey DSCR-type lenders, 2025

What the ranking shows:

• Borrower type sorts the lenders. Loan Funder, Constructive Loans, BPL Mortgage, Logan Finance, RF Renovo and Kiavi made 92% to 100% of their loans to entities. CrossCountry, Velocity, Emporium TPO, United Wholesale and Hometown Equity made none to entities. Champions Funding split almost in half (349 entity loans, 346 to natural persons). We take age 8888 in HMDA to mean an applicant that is not a natural person; Champions Funding reports a sex value on 348 of its 349 age-8888 loans, so its split is the least clean, and a lender can report an individual guarantor differently. Read this as how each lender reports, not as proof of who signed.
• Three direct lenders in the top 12. CrossCountry Mortgage reported 2% of its loans as brokered, and Hometown Equity Mortgage and RF Renovo none, so a borrower deals with them directly. The rest took 71% to 100% through brokers.
• The rate spread among the top 12 (excluding Velocity) is 0.751 points. Logan Finance's median is 6.999% and United Wholesale's 7.75%: $186.80 a month on a $365,000 loan (our arithmetic). Velocity's 9.865% is the figure it reports in other states and reflects a different product; do not compare it with the rest.
• Loan size and mix separate lenders. Loan Funder ($305,000) and United Wholesale ($295,000) have the smallest medians among the large lenders; Logan Finance ($475,000), Constructive Loans and Emporium TPO ($465,000) the largest. RF Renovo's $245,000 median sits in Camden and Mercer counties.
• Interest-only shares differ widely. Hometown Equity Mortgage (15.7%) and Loan Funder (14.9%) put the most into interest-only; Champions Funding 1.6% and United Wholesale none. Statewide 633 loans were interest-only, at a 7.5% median.
• Emporium TPO's terms. It reports its 30- and 40-year terms in years instead of months. We counted its 324 loans reported as 30 years as 360 months, as our national, New York and Arizona pages do. Read literally, New Jersey would show 7,216 loans instead of 7,540.

Kiavi, Visio, LendingOne, Lima One, Velocity and RCN in New Jersey

New Jersey has less platform lending than the top of the list suggests: the five platform names that wrote DSCR-type loans made 698, 9.3% of the total (our arithmetic). Kiavi Funding reported 165 DSCR-type loans at a 7.25% median, out of 1,139 conventional first-lien investor loans; 974 of those are short-term loans, the product on our New Jersey hard money page. Investor Mortgage Finance LLC, the entity we label as Visio Lending's affiliate in earlier pages, reported 114 loans (7.362%), all of them DSCR-type. Velocity reported 340, LendingOne 45 and Lima One Capital 34. RCN Capital had 130 DSCR-type loans, with 168 short-term loans on top. These are HMDA-visible loans only; see our Kiavi review, Visio versus Velocity versus Kiavi, LendingOne and Lima One for the companies themselves.

Largest New Jersey lenders by conventional first-lien investor loans, 2025, with their DSCR-type count

Loan Funder and Kiavi show the trap: more than 1,100 investor loans each, but 509 and 165 DSCR-type, and a median of 9.75% and 10.24% across all of them because the rest are short-term loans. Rocket Mortgage appears with 424 investor loans and none that meet our DSCR-type filter. Rank by DSCR-type loans, not by investor loans. For the lenders at the top, see our reviews of Champions Funding, Loan Funder, Constructive Loans, BPL Mortgage, Logan Finance and Hometown Equity Mortgage.

What rates did the market price? New Jersey 2025

The middle half of New Jersey DSCR-type borrowers paid between 6.99% and 7.75%, with the 10th percentile at 6.65% and the 90th at 8.375%. Of the 7,524 loans with a rate, 2,289 (30.4%) were at 7% or less and 1,120 (14.9%) above 8%; the lowest was 5.125% and the highest 12.999%.

New Jersey DSCR-type loans, 2025 (federal HMDA data, our arithmetic)

New Jersey's median is 0.125 points above New York's 7.25% on our New York page, with the same definition. The premium over income-qualified business-purpose investor loans is 0.376 points (7.375% against 6.999%), and it cannot be read as the price of the ratio test: the two groups differ in loan size and lender. By purpose, cash-out refinances were 43.3% of the loans (3,264), purchases 39.3% (2,964) and no-cash-out refinances 14.5% (1,096). Loans under $150,000 priced at 7.5%; every larger band had a 7.375% median.

DSCR-type loans by loan size, 2025

Monthly principal and interest on the $365,000 median loan, 30-year fixed, at each New Jersey 2025 rate (our arithmetic)

A borrower at the 25th percentile pays $95.06 a month less than one at the median, and the median borrower $93.94 less than one at the 75th (our arithmetic). The same arithmetic on the typical loan in two parts of the state gives different pictures: the north urban core's median of $505,000 at 7.375% is $3,487.91 a month and needs $4,359.89 of rent for a 1.25 ratio on principal and interest, while the Mercer and Philadelphia-side median of $205,000 at 7.375% is $1,415.88 and needs $1,769.86. These are note rates at origination in 2025, not today's quotes; see DSCR loan rates 2026 for the current picture and our DSCR calculator to put in your own rent and taxes. The 1.25 ratio is an illustration; lenders set their own minimums, and real ratios also count taxes and insurance.

The New Jersey rule most DSCR pages skip: a first lien on a one- to six-unit building

Most DSCR guides say a business-purpose loan has no rate limit. In New Jersey the text is narrower, and the data shows why it matters: 4,633 of the 7,540 loans (61.4%) went to natural persons, a majority, though the entity share is higher than in New York, where our New York page shows 26.9% (same definition, different lender mix). We read the New Jersey provisions on October 29, 2026: N.J.A.C. 3:1-1.1 on Cornell's Legal Information Institute, and N.J.S.A. 31:1-1, 31:1-6 and 2C:21-19 on FindLaw, which states its copies are current as of January 1, 2024 and may not reflect the latest version. The Legislature's own site would not load for us, so any change after that date is not verified. We quote short phrases and give our reading, not legal advice.

New Jersey provisions that bear on a DSCR loan

Putting the two pieces together, on the text we read: the "any agreed rate for loans of $50,000 or more" exemption does not reach a first lien on a one- to six-unit building, so for those loans the ceiling in N.J.A.C. 3:1-1.1(b) is the starting point, and an entity borrower cannot raise civil usury under 31:1-6. Every DSCR-type loan in the file was above $50,000, so loan size does not take any of them out. The statute also lists other exemptions we did not work through (loans by banks, savings associations and FHA-approved mortgagees that are later bought by federal housing agencies, Fannie Mae, Freddie Mac or Ginnie Mae in 31:1-1(e)(2), and a separate cap in 31:1-1(g) for some business or agricultural loans of $1,000 or more). We read statutes, not cases; whether a business-purpose loan to an individual is treated differently, and how lenders structure around the ceiling, are questions for a New Jersey attorney.

What the data adds is the exposure. Note rates are not the whole price (points and fees are not in HMDA), but they are the visible part:

DSCR-type loans by note rate and borrower type, 2025 (our arithmetic)

Natural-person borrowers paid a median of 7.375% against 7.25% for entities, with 25th and 75th percentiles of 7% to 7.875% against 6.875% to 7.625%. Loans to individuals above 8% were 925 (20.0%), above 9% 356 and above 10% 153; the highest to a natural person was 12.74%. We do not know the Federal Reserve index for any month of 2025 or 2026 from a source we saved, so we cannot say where the ceiling fell, and a table of counts above 8% or 9% is not a count of loans above the ceiling. If you are an individual borrower on a New Jersey one- to four-unit rental, ask the lender in writing which rate rule it relies on, and ask for the annual notice of ceilings that 31:1-1(b) describes. For the LLC route, see our DSCR loan LLC page and LLC for rental property. Licensing, foreclosure and the realty transfer fee are covered, with their statutes, on our New Jersey hard money page (read October 11, 2026; we did not re-read them today).

Who got denied

The federal file also lists denied applications, which some of our state pages leave out. Counting applications that ended in an origination or a denial and passed the same filter, 1,796 of 9,336 were denied: 19.2% (our arithmetic). Withdrawn applications and files closed for incompleteness are in other categories that we did not count.

First denial reason reported on denied DSCR-type applications, 2025

Debt-to-income appears only a handful of times (71) because the group is defined by having no ratio reported. Collateral, the property, is the leading reason, which is consistent with a loan underwritten on the asset. "Other" and "Exempt" together are another 572 and say little. Lender-level denial rates in this file are unreliable for some lenders, because their denied applications carry terms that differ from their closed loans, so we do not rank lenders by denial rate. Compare states on our DSCR denial page.

How we read the federal file

The Home Mortgage Disclosure Act (HMDA) file lists every loan a reporting lender originates and every application it denies, with its note rate, amount, loan-to-value, purpose, county and lender. We used the 2025 New Jersey file of originated and denied loans from the FFIEC HMDA Data Browser, downloaded October 29, 2026: 234,838 rows, all occupancies. Of the 19,981 originated investment-property loans, 19,037 had 1-4 units; after removing reverse mortgages and open-end lines, 18,316 remained, and 18,032 were conventional first liens. Of those, 14,662 were made for a business purpose, 10,872 of them with no debt-to-income ratio reported (NA). The 7,540 DSCR-type loans are the 30-year-or-longer part of that group. The remaining no-DTI loans are short-term loans (3,158 at 36 months or less, excluding Emporium TPO, median 10.25%) and loans with terms between 37 and 359 months. The loan term in HMDA is in months, so 360 means 30 years. Rates reported as NA (16 loans) are left out of the rate statistics. Percentiles use linear interpolation. We used the same definition and counting method as our New York, Virginia, Arizona and Tennessee pages, and the extract of the 7,540 loans and the counting script are saved with the data file.

Limits, so you can weigh the numbers:

• A proxy, not a census. HMDA does not mark DSCR loans. Other no-debt-to-income business loans fall into the group, such as bank-statement or asset-based loans, and DSCR loans reported with a ratio or a shorter term do not.
• Rates, not prices. Discount points, total loan costs and the prepayment-penalty term are NA on all 7,540 loans; the file has no credit score, rent or DSCR ratio.
• Entity is our reading. We count applicant age 8888 as an entity (2,907 loans). Of those, 2,529 also carry sex code 4 (not applicable) and 378 carry a sex value, 348 of them from Champions Funding; counting only the 2,529 would give 33.5% to entities, and the natural-person count of 4,633 (age reported) does not change. Reporting of guarantors varies by lender.
• Denials are a rough measure. The 19.2% counts applications by the same filter, but a denied application has no closed loan to define it, and lenders fill in denied applications differently.
• Location gaps. 320 loans have no county; the regions and counties are lists named in the data file, not official definitions.
• Rounded amounts. Loan amounts are rounded in the public file, so medians land on round figures.
• One year. This page uses 2025 only; we did not compare it with 2024.
• Lender names are as filed. Corporate groups can file under several names (RCN Capital files under two identifiers), and lenders below the reporting thresholds are missing.
• Law was read from secondary copies. FindLaw's text is dated January 1, 2024 and the regulation comes from Cornell's copy; we did not read the Legislature's site.

What a New Jersey investor can do with this

1. Pick the comparison set by place. In the north urban core Champions Funding (359 loans), Emporium TPO (191) and CrossCountry Mortgage (177) lead; in the Mercer and Philadelphia-side counties Loan Funder (212), Champions Funding (190) and RF Renovo (142); at the shore Loan Funder (129), Champions Funding (99) and CrossCountry Mortgage (76). A lender with a few hundred loans near you has done the work you are asking for.
2. Get three quotes from different channels. A broker-fed lender such as Champions Funding or United Wholesale, a direct lender such as CrossCountry or Hometown Equity, and a platform lender. Among the top 12 (excluding Velocity) the lowest and highest medians are 6.999% and 7.75%, worth about $186.80 a month on $365,000 (our arithmetic).
3. Decide whose name goes on the note, then ask about the rate rule. If you borrow personally, ask the lender in writing which New Jersey rate rule it relies on for a first lien on a one- to four-unit building. If you use an LLC, read the lender's entity requirements and what a personal guaranty means for you.
4. Rank by DSCR loans, not investor loans. Rocket Mortgage made 424 investor loans in New Jersey and none that fit the filter; Kiavi made 1,139 and 165 fit.
5. Ask for the cost sheet. Points, fees and the prepayment penalty are not in HMDA. Ask for a written estimate of both before paying for an appraisal; our DSCR versus conventional comparison shows how to compare.
6. On a two- to four-unit building, ask how the lender counts rent. Four in ten New Jersey DSCR loans are on such buildings, and in the north urban core it is two in three; ask whether the lender uses the lease, market rent or the appraiser's schedule, and what happens to vacant units.

FAQ

Related reads: New Jersey hard money lenders, and the New York, Pennsylvania and Virginia DSCR pages use the same federal definition.

Loan-level data: FFIEC/CFPB HMDA Data Browser, originated and denied investment-property loans for New Jersey, 2025, downloaded October 29, 2026 (request URL, extract and counting script saved with the data file); field definitions from the FFIEC HMDA LAR data fields page; lender names from the FFIEC 2025 filer list; counties from the Census Bureau 2020 county list. Law: N.J.A.C. 3:1-1.1 (Cornell Legal Information Institute) and N.J.S.A. 31:1-1, 31:1-6 and 2C:21-19 (FindLaw Codes, current as of January 1, 2024), read October 29, 2026. All counts, shares, medians, percentiles and payment figures are our arithmetic. This is analysis of public documents, not investment, legal or tax advice, and not a loan offer.