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DSCR loans in New Jersey

Quick answer

DSCR loans in New Jersey qualify investors on a property's rental income instead of personal income, typically with 20%–25% down and a 660+ credit score.

By Purchase Mortgage Loan Editorial Team Checked against official sources per our editorial standardsLast updated

DSCR loan snapshot for New Jersey

ItemEstimate
Minimum down payment20%–25%
Minimum credit score660–700
Typical NJ home value$427,600
3.5% down on typical home$14,966
20% down on typical home$85,520
Avg. effective property tax2.23%/yr (~$795/mo)
Income for typical home (31% rule)$153,000

Rate assumption: 7.18% (Freddie Mac PMMS 30-year fixed average, week of November 5, 2026). Change it in the payment calculator.

Which New Jersey programs pair with DSCR loans?

  • First-Time Homebuyer Mortgage Program: A fixed-rate first mortgage for eligible first-time buyers.
  • Down Payment Assistance Program: Forgivable assistance (up to a set dollar amount) paired with an NJHMFA first mortgage.

Details and current limits: New Jersey Housing and Mortgage Finance Agency (NJHMFA).

How is DSCR calculated?

Lenders divide the property's market rent (from an appraiser's rent schedule or an existing lease) by the full monthly payment: principal, interest, taxes, insurance and any HOA dues. Example: $2,400 rent ÷ $2,000 payment = 1.20 DSCR.

Typical DSCR loan requirements

  • Down payment: 20%–25% (sometimes 15% for strong files).
  • Credit: 660–700 minimum.
  • Reserves: commonly 3–12 months of payments.
  • Property types: 1–4 unit homes, condos and townhomes; some lenders allow short-term rentals.

DSCR loans in New Jersey cities

NewarkJersey CityPatersonElizabethToms RiverEdisonTrentonCliftonCamdenHamiltonBayonneLakewoodPassaicEast OrangeUnion CityVinelandHobokenNew BrunswickPerth AmboyPlainfieldWest New YorkHackensackSayrevilleSicklervilleLindenKearnyFort LeeAtlantic CityFair LawnGarfieldLong BranchWestfieldPrincetonRahwayEnglewoodBergenfieldOld BridgeMillvilleBridgetonParamusRidgewoodLodiCliffside ParkCarteretSouth PlainfieldSomersetGlassboroNorth PlainfieldSummitRoselleHillsboroughParsippanyLindenwoldSecaucusElmwood ParkPleasantvilleMorristownPalisades ParkWoodbridgeHarrisonHawthorneTinton FallsPoint PleasantIselinRutherfordOcean AcresPreaknessDoverColoniaDumontAvenelNew MilfordMadisonNorth ArlingtonSouth RiverSpringdalePrinceton MeadowsTenaflyPhillipsburgAsbury ParkMetuchenHighland ParkFairviewWilliamstownCherry Hill MallHammontonRamseyEdgewaterMoorestown-LenolaMiddlesexHopatcongShort HillsBradley GardensWest FreeholdCollingswoodRoselle ParkWestmontMercervilleEchelonNew ProvidenceEatontownFranklin ParkWoodland ParkRidgefield ParkFlorham ParkFordsSomervilleHoliday City-BerkeleyRed BankOaklandFreeholdHaddonfieldUpper MontclairPennsvilleGlen RockHasbrouck HeightsRiver EdgeBound BrookMartinsvilleRobertsvilleWallingtonBellmawrHamilton SquareGuttenbergRingwoodGloucester CityRidgefieldOcean CityWestwoodWanaqueGreentreeFranklin LakesPompton LakesBeachwoodLittle FerryTotowaLincoln ParkManvilleOak RidgeMcKee CityPompton PlainsKendall ParkPine HillThe HillsMarltonSomers PointLake HiawathaLake HopatcongEast FranklinBlackwells MillsEast RutherfordHackettstownBudd LakeWood-RidgeWaldwickHillsdaleBrookdaleMaywoodWhite Horse

Frequently asked questions

Yes. DSCR loans are available statewide in New Jersey through approved lenders, subject to county loan limits where they apply.

Often yes. New Jersey Housing and Mortgage Finance Agency (NJHMFA) and local programs frequently pair assistance with FHA, conventional, VA or USDA first mortgages. Eligibility depends on income, price and program rules.

Answer a few questions on Purchase Mortgage Loan and we'll match you with lenders and loan officers in our network who serve New Jersey.

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Figures on this page are estimates for educational purposes only and are not a loan offer or commitment to lend. Rates, loan limits, fees and assistance programs change frequently and vary by lender, location and borrower profile. Confirm current terms with a licensed loan officer.