Paterson · Passaic County, NJ
Multifamily & DSCR Loans in Paterson, NJ
Business-purpose financing for investors who buy, renovate, build or refinance in Paterson, Passaic County.
Investing in Paterson
Paterson is the Passaic County seat, founded in 1791 by the Society for Establishing Useful Manufactures, which Alexander Hamilton promoted, at the Great Falls of the Passaic River. Its mills made it known as the "Silk City," and the falls are now Paterson Great Falls National Historical Park. I-80, Route 19, Route 20 and NJ Transit's Main Line serve the city.
Most of the housing is older two-, three- and four-family homes and multifamily buildings, with mixed-use corridors downtown and along Main Street. That makes Paterson a strong market for 2–4 unit DSCR loans and value-add multifamily bridge loans.
Local items to plan for
Older buildings often need major systems and code work, so a detailed scope and realistic budget matter. Confirm the city's rental registration and certificate of occupancy requirements before closing.
Statewide rules that apply in Paterson
Check the local version of each item with the municipality before closing.
- Landlord registration. File a landlord registration statement with the municipal clerk for 1–2 unit properties, or with the NJ Department of Community Affairs for most buildings with 3 or more units.
- Certificate of occupancy. Many towns require a CO or continued CO inspection when a property sells or a new tenant moves in. Ask the town before you set a closing or lease date.
- Lead-safe certification. Under P.L. 2021, c.182, many rentals built before 1978 need a lead-based paint inspection at tenant turnover or on the state's schedule.
- Flood zone and insurance. Check the FEMA flood map. If the property is in a special flood hazard area, include flood insurance in the payment.
- Entity in good standing. Keep your LLC's annual report current with the NJ Division of Revenue and Enterprise Services so title can insure the closing.
General information, not legal advice. Requirements vary by municipality.
Paterson investor loan FAQ
Do you lend on Paterson 3- and 4-family homes?
Yes. A DSCR loan can finance a stabilized 2–4 unit property, and a bridge or rehab loan can fund one that needs work.
Can I finance a building that's partly vacant?
Yes, often with a bridge loan sized on the as-is value and a business plan to lease it up, then refinanced into long-term financing.
Do you make owner-occupied loans in Paterson?
No. Lendiqo makes business-purpose loans to LLCs and other entities on non-owner-occupied investment property. We don't make consumer mortgages.
Nearby markets
More on investor loans in Passaic County →
All loan programs
DSCR Rental Loans
30-year rental loans for purchases and refinances that qualify on the property's rent instead of your personal income.
Learn more →Fix & Flip Loans
Short-term purchase and rehab loans for 1–4 unit investment properties, with renovation money released in draws.
Learn more →Bridge Loans
Short-term financing to close fast, reposition or lease up a property before long-term financing.
Learn more →Multifamily Loans
Acquisition, value-add bridge and construction financing for 5+ unit apartment buildings.
Learn more →Mixed-Use Loans
DSCR and bridge financing for buildings with apartments over stores or offices.
Learn more →Construction Loans
Non-bank financing for land, site work and vertical construction, funded in draws.
Learn more →LLC Loans
Every Lendiqo program is built for investors who buy and hold in an LLC.
Learn more →Have a deal in Paterson?
Send the basics on a property and a loan officer will follow up. You'll hear back from a person, not a call center.