A New York DSCR loan is business-purpose financing on a 1-4 family rental, secured by a mortgage that is foreclosed in court. New York charges a mortgage recording tax of at least $1.00 per $100 of debt across its state components, and more inside the Metropolitan Commuter Transportation District.
On a business-purpose loan, New York's mortgage recording tax is part of your cash to close, so it belongs in the deal math before you sign a contract.
If you're financing a New York rental through an LLC, see why DSCR lenders can skip personal tax returns.
How much is New York's mortgage recording tax?
New York's state mortgage recording tax has three components per $100 of debt secured: a 50-cent basic tax, a 25-cent special additional tax and a 25-cent additional tax, which is 30 cents in the Metropolitan Commuter Transportation District.
| Component | Rate per $100 of debt |
|---|---|
| Basic tax | $0.50 |
| Special additional tax | $0.25 |
| Additional tax, outside the MCTD | $0.25 |
| Additional tax, inside the MCTD | $0.30 |
Exception: New York City and some other localities add their own mortgage taxes, which were not researched here. Get the closing estimate in writing.
According to the New York State Department of Taxation and Finance, Mortgage recording tax, page updated December 30, 2025, as of October 2026.
How are rental property loans foreclosed in New York?
New York foreclosures are lawsuits brought in the state Supreme Court.
- The New York courts' foreclosure help page describes foreclosure as a type of lawsuit in the New York State Supreme Court.
Exception: Court procedure and timing depend on the case and the county. A New York attorney can speak to a specific property.
According to New York Courts, Foreclosures, as of October 2026.
Does New York limit prepayment penalties on rental property loans?
New York's General Obligations Law 5-501(3) limits prepayment penalties on loans above 6% interest secured by a 1-6 family residence occupied by the owner: none after one year, and before that only if the contract provides for one. It does not reach a loan on a rental the owner doesn't occupy.
- The limit applies to owner-occupied 1-6 family residences.
- If the property is a rental you don't occupy, then prepayment terms come from the loan contract.
Exception: Prepayment structures vary by lender. Get the schedule in writing before you commit.
According to N.Y. General Obligations Law 5-501, New York State Senate, as of October 2026.
What New York landlord rules affect a rental property's numbers?
New York caps a security deposit at one month's rent, with listed exceptions, and requires an itemized statement and return within 14 days after the tenant vacates, under General Obligations Law 7-108.
- GOL 7-108(1-a)(a) sets the one-month cap.
- GOL 7-108(1)(e) sets the 14-day deadline for the itemized statement and return.
Exception: Local laws can add deposit rules. Check the municipality where the rental sits.
According to N.Y. General Obligations Law 7-108, New York State Senate, as of October 2026.
Local guides for New York: New York City.
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Disclaimer
This page is general education about business-purpose real estate financing and state law as published by official sources on the date shown. It is not legal, tax or lending advice, not an offer to lend and not a rate quote. Laws and lender guidelines change; confirm current rules with the lender, the title company and your own attorney or tax adviser.