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Hard money and fix and flip loans in Manhattan, New York
Financing for townhouses, condos and mixed-use buildings in Manhattan, from Harlem to Lower Manhattan.
The Manhattan market for investors
Manhattan has the highest prices in the region and a housing stock dominated by co-ops and condos, with townhouses in Harlem and on the brownstone blocks of the Upper West and Upper East Sides, and mixed-use walk-ups with retail on the ground floor.
Investors renovate townhouses, buy condos to rent, and buy small mixed-use buildings to reposition. Co-op shares are not real property, and boards restrict investors, so investor lending here focuses on condos, townhouses and buildings.
Areas investors ask about
- Harlem and Hamilton Heights: brownstones and townhouses, much of them landmarked
- Washington Heights and Inwood: apartment buildings and lower entry prices
- Upper West Side and Upper East Side: high-end townhouses and condos
- East Village and Lower East Side: mixed-use walk-ups with retail below
Plan for these on a Manhattan deal
- New York City’s mortgage recording tax is about 1.8% of a loan under $500,000 and 1.925% at $500,000 or more on one- to three-family homes and condos, and 2.8% on larger buildings and commercial property at $500,000 or more. Build it into your cash to close.
- At $1 million or more, buyers of one- to three-family homes and condos pay the mansion tax, which rises in steps from 1% to 3.9% at $25 million or more. The seller customarily pays the city and state transfer taxes.
- Large parts of Harlem, the Upper West Side and the Village are landmarked, so exterior work needs Landmarks Preservation Commission approval.
- Work that changes layout, structure, plumbing or the unit count needs Department of Buildings filings, usually through a registered architect or engineer, and a new certificate of occupancy for a change in units.
- Buildings of six or more units built before 1974 are often rent stabilized, and Good Cause Eviction covers many other rentals unless an exemption applies, such as an owner with 10 or fewer units statewide. Ask for the rent roll and registration history before you sign.
Loans available in Manhattan
| Program | Use it for | Top leverage |
|---|---|---|
| DSCR rental loans | Purchase or refinance of long-term rentals, two- to four-family homes, condos and small multifamily | 85% loan-to-value to buy, 80% on a cash-out refinance |
| Ground-up construction loans | Building a home, a two- or three-family or a small apartment building, lot included | 90% of cost for experienced builders, up to 70 to 75% of the finished value |
| Fix and flip loans | Purchase plus renovation of a property you intend to sell | 90% of the purchase price and 100% of the rehab, up to 70 to 75% of after-repair value |
| Portfolio and commercial loans | A group of rentals under one note, or multifamily and commercial property | 80% on a portfolio purchase; commercial priced per deal |
Manhattan hard money loans: common questions
Yes, as investment property, including non-warrantable condos. We do not lend on co-op shares.
Yes, through our commercial program, priced on the property and its income.
Local Law 18 bars renting out a whole home or apartment in the city for less than 30 days, so investment properties are underwritten on long-term rent.
Fix and flip loans average up to 21 days and can close in about 7 days when title and insurance are ready. Rental and DSCR loans take about 30 days, appraisal included. In New York each side is represented by an attorney, and a title company insures the title.
Looking at a property in Manhattan?
Send the address, the price and what you plan to do with the property. We will reply with the leverage and pricing that fit your deal.