2024 · New Jersey

How investors finance real estate in New Jersey

In 2024, 14,283 investment-property loans worth $5.6B were originated on single-family 1-4 unit homes in New Jersey. Here's how those terms compared to the rest of the country.

Investor rate premium

100 bps

U.S. median: 88 bps

Denial rate

18.5%

U.S. median: 17.2%

DSCR / business-purpose

79%

U.S. median: 69%

Median LTV

74%

U.S. median: 75%

What the numbers say

Investors in New Jersey borrowed at a median rate of 7.625%, versus 6.625% for owner-occupants — a 100 bps premium that ranks 20th of 51 states.

Their applications were denied 18.5% of the time. The leading reasons for denial were collateral, debt-to-income ratio, credit history.

79% of investor loans were business- or commercial-purpose — the category that includes DSCR and LLC-held loans — and 23% were cash-out refinances. The typical loan-to-value was 74%, implying about 26% down.

ProInvestorHubInvestor rate premium: New Jersey vs the nationExtra basis points investors pay over owner-occupantsNew Jersey100 bpsU.S. median88 bpsHighest (Mississippi)163 bpsSource: CFPB HMDA 2024 · proinvestorhub.comProInvestorHub

Frequently asked questions

How much more do investors pay for a mortgage in New Jersey?

In 2024, the median investment-property loan in New Jersey carried a rate of 7.625% versus 6.625% for an owner-occupant — a premium of 100 bps. That ranks 20th of 51 states (1 = highest premium).

What share of investor loan applications are denied in New Jersey?

18.5% of investment-property applications were denied in New Jersey in 2024, the 16th-highest denial rate among the 51 states. The most common denial reasons were collateral, debt-to-income ratio, credit history.

How common are DSCR and business-purpose investor loans in New Jersey?

79% of investor loans in New Jersey were flagged as primarily business or commercial purpose — the bucket that includes DSCR and LLC-held loans (3rd of 51). The median loan-to-value was 74%.

Source: CFPB / FFIEC HMDA Data Browser (loan-level public dataset), 2024. Single-family 1-4 unit, site-built loans; financed purchases only.