Hard money lenders in New York

The New York market

Two very different markets: high-value, slow-velocity NYC and suburban deals where bridge and construction lending dominate, and upstate (Buffalo, Rochester, Syracuse) where low price points and strong rents attract BRRRR investors despite judicial foreclosure.

Licensing

Mortgage banker and broker licensing under the Banking Law targets residential loans to individuals; business-purpose loans to LLCs are generally exempt, which is why New York hard money is almost always made to entities.

Usury and interest-rate rules

New York has a 16% civil usury cap and a 25% criminal cap. Loans of $250,000 or more are exempt from civil usury; loans of $2.5 million or more are exempt from criminal usury. Lenders structure loan sizes and fees around these thresholds.

Foreclosure and lender risk

New York uses judicial foreclosure as its primary method, with a typical timeline of judicial — frequently 1 to 3 years in downstate counties. Judicial process means a lender must sue to recover collateral, which lengthens recovery and raises cost — lenders compensate with lower leverage (often 5 points lower) and higher rates than in non-judicial states.

What is different here

Mortgage recording tax (roughly 1.05%–2.8% depending on county and amount) is a significant closing cost; CEMA assignments can reduce it on refinances. Slow foreclosure and tenant protections translate into lower leverage and higher pricing downstate.

Lenders active in New York

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