DSCR loans in New Jersey — what actually changes?

THE NUMBERS

ILLUSTRATIVE — published program floors, not a quote or a commitment to lend. Subject to underwriting, appraisal and final credit approval.

Who pays the transfer fee in New Jersey?

The Division of Taxation imposes the Realty Transfer Fee on the seller of real property for recording the deed, calculated on the consideration recited in the deed — or, in certain cases, on assessed valuation divided by the Director's Ratio. On top of that sits a supplemental fee on transfers of real property over $1 million, historically the buyer-side 1% "mansion" fee, which P.L. 2025 c.69 amended into a graduated structure. The mechanics of who pays and at what rate changed recently enough that you should have your title company or closing attorney price your specific transaction rather than rely on an older summary.

Is there a tax on the loan itself?

New Jersey does not levy a separate state mortgage or intangible tax on the note in the way Florida and Tennessee do — the fees on the transfer attach to the deed. County recording fees still apply to the mortgage, and title premiums are a real line item. Because the transfer-side burden falls mainly on the seller, a New Jersey purchase can look surprisingly light on the buyer's side of the settlement statement, which makes it easy to under-model the holding cost that follows.

How much do property taxes matter here?

More than anywhere else. New Jersey's effective residential property tax rate is consistently the highest in the country, and municipalities revalue on their own schedules, so two towns in the same county can produce very different DSCRs on identical rents. The desk underwrites the municipal bill and expects it to move after a sale in a recently revalued town. If a New Jersey file is thin, taxes are almost always the reason — and the fix is leverage or a buy-down, not a more optimistic rent.

What is attorney review, and does it slow my loan?

In New Jersey residential practice, a contract prepared by a real estate broker is subject to a three-day attorney review period, during which either side's attorney can disapprove or modify it. Closings are typically attorney-run rather than title-agent-run. Practically, it means the contract is not firm on day one, and your appraisal order should follow the end of review rather than precede it. It does not lengthen underwriting — the desk can price and issue a term sheet during review — but it does shift the start of the 21-to-30-day clock.

What about foreclosure, entities and leases?

New Jersey is a judicial-foreclosure state with among the longest timelines in the country. Some lenders trim leverage or add basis points here; Silt does not — the grid is national. An out-of-state LLC doing business in New Jersey registers with the state, and title will want good standing. Tenancy rules are protective by national standards, particularly around cause for removal, so lease documentation and the rent roll get read carefully in underwriting. Your attorney, not this page, should advise on any specific tenancy.

Which New Jersey markets do investors bring us?

The Hudson waterfront — Jersey City, Bayonne, Union City — trades on New York demand, so yields are tight and two-to-four unit stock dominates. Newark, Irvington and East Orange carry the state's strongest rent-to-price posture with correspondingly heavier management and tax diligence. Paterson and Passaic are similar in shape. Down the shore, Asbury Park and the Monmouth and Ocean county towns mix long-term and seasonal strategies, where the municipal short-term rental ordinance is the first thing to read. Qualitative posture, not a forecast.

Worked example — a Newark two-family

Illustrative only, from published program floors — not a quote, an approval, or a commitment to lend. At 1.11 the file sits in the 1.00–1.19 band and takes a further +25 basis points. Dropping to 70% leverage is usually the cleanest lever on a New Jersey two-family.

WHAT WE NEED FROM YOU

• Entity documents — articles or certificate of formation, operating agreement, EIN letter. Every Silt loan closes in an LLC or corporation, never a personal name.
• Leases or a rent roll — current leases where the units are occupied; on a vacant unit the appraiser's rent schedule (Form 1007) carries the income.
• Insurance — a binder naming the borrowing entity, with the lender's mortgagee clause.
• Bank statements — two months, showing reserves and the source of the down payment.
• Contract or payoff — the purchase contract if buying, the payoff statement if refinancing.
• New Jersey add-on — the municipal tax bill and, where the town has revalued, the current assessment, so the tax line is underwritten at the real number.
• New Jersey add-on — the fully executed contract after attorney review, plus the certificate of occupancy or continued-occupancy inspection where the municipality requires one.

FREQUENT QUESTIONS

Does Silt lend in New Jersey?

Yes, on the same programs, leverage and pricing grid as the rest of the 42-state footprint.

Who pays the Realty Transfer Fee?

The state imposes it on the seller at recording. The supplemental fee on transfers over $1 million was restructured in 2025 — have your closing attorney price your specific deal.

Do high New Jersey taxes disqualify a rental?

No, but they lower DSCR. Two-to-four unit files often clear more easily than single-family here because the rent side scales with the tax side.

Do I need to be a US citizen?

No. Silt lends to US citizens, permanent residents, non-permanent residents and foreign nationals; foreign-national files cap at 70% LTV and price 75 basis points higher.

Will you pull my credit to quote?

No. Quoting is free and takes no credit pull. Credit is pulled only when you want a written term sheet, and it sets the pricing tier.

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