Top Mortgage Lenders in New York for First-Time Buyers in 2025

Your tax returns show $40,000 income but you deposited $120,000 last year. You’ve been self-employed for 18 months. Your credit score is 680. You want to buy a two-family in Queens and rent one unit.

Chase said no. Wells Fargo said no. Your local credit union said “maybe” then ghosted you.

This is where most first-time buyer stories end. But it’s actually where interesting lending begins.

The Mortgage Market Nobody Talks About

Sal Bossio started in mortgages during COVID’s refinance boom, when anyone with a pulse and a W-2 could get a loan. Now rates are higher, guidelines are stricter, and traditional lenders have become allergic to anything outside their checkbox criteria.

But here’s what changed: alternative lending got sophisticated. According to Inside Mortgage Finance, non-QM originations reached $120 billion in 2024, up from just $25 billion in 2019. Bank statement loans now price just 0.75% above conventional rates. DSCR loans let rental income qualify you. P&L mortgages use your actual business profit, not what’s left after your accountant’s creativity.

When you find a mortgage broker in New York who understands these products, rejection becomes approval. The same file that gets declined everywhere suddenly has five options.

Real Numbers, Real Scenarios

Let’s talk actual deals that closed through The Mortgage Universe:

The Uber Driver: Showed $31,000 on tax returns after mileage deductions. Bank statements showed $75,000 in deposits. Bank statement loan approved at 7.2% for a $450,000 purchase in Long Island.

The Restaurant Owner: Just opened second location, tax returns were a disaster. P&L loan using profit and loss statements, not tax returns. Bought $650,000 home with 15% down.

The Crypto Trader: Massive assets, minimal traditional income. Asset depletion loan qualified him based on investment accounts without liquidating positions. Closed on $1.2M property.

These aren’t unicorns. They’re typical non-QM deals that close every day while traditional banks keep saying no.

Why Banks Actually Say No

Banks don’t hate you. They hate risk. Or rather, they hate risk that doesn’t fit their resale criteria. The Federal Housing Finance Agency oversees Fannie Mae and Freddie Mac, which purchase about 70% of U.S. mortgages. These agencies have rigid guidelines. Step outside them, and banks can’t sell your loan.

A mortgage broker near New York working with portfolio lenders changes everything. These lenders keep loans instead of selling them, so they make their own rules. They can actually look at your situation instead of just running your numbers through an algorithm.

Barrett Financial Group, which powers The Mortgage Universe, connects to lenders who understand that a freelance developer making $150,000 is less risky than a retail manager making $50,000, even if the developer’s tax returns look worse.

The Programs That Actually Work

Bank Statement Loans: Forget tax returns. Use 12-24 months of bank deposits. Perfect for anyone who writes off significant business expenses. The Self-Employed Mortgage Access Coalition reports these loans serve 5.4 million self-employed Americans. Rates typically 0.5-1.5% above conventional.

DSCR (Debt Service Coverage Ratio): The property’s rental income qualifies you, not your personal income. Buy a three-family, live in one unit, rent covers the mortgage. Your job income becomes irrelevant.

Asset Depletion: Have $500,000 in stocks but minimal income? Lenders calculate a fictional monthly income based on your assets. No liquidation required. Freddie Mac’s guidelines allow asset depletion for conventional loans too, though most lenders don’t offer it.

ITIN Loans: No Social Security number? ITIN loans work with Individual Taxpayer Identification Numbers. Same rates as similar credit profiles with SSNs.

Hard Money Bridge Loans: Need to close in 5 days? Hard money gets you the property, then you refinance into better terms once you own it.

The Catch (Because There’s Always a Catch)

Non-QM costs more. Not dramatically, but measurably. Mortgage News Daily tracks rates showing non-QM averaging 0.75-2% above conventional. If conventional rates are 6.5%, expect 7-8% for non-QM. Down payments start at 10%, sometimes 20%. These aren’t subprime predatory loans, but they’re not government-subsidized either.

The math still works. Paying 7.5% interest beats paying rent forever. Building equity at higher interest beats waiting for perfect rates that may never align with your life timing.

Finding the Right Broker

The top mortgage lenders New York first-time buyers need aren’t advertised on billboards. They’re specialty lenders accessed through experienced brokers who know which lender fits which scenario.

Questions that matter:

● How many non-QM lenders do you work with?

● What’s your average approval rate for self-employed borrowers?

● Can you close in 21 days?

● Do you charge upfront application fees? (Run if yes)

The Consumer Financial Protection Bureau recommends comparing at least three brokers and getting all fee agreements in writing.

The Real Timeline

Traditional mortgage: 45-60 days Bank statement loan: 21-30 days DSCR loan: 25-35 days Hard money: 5-10 days

Sal Bossio closed a renovation loan in two weeks. Speed happens when brokers know exactly which lender to approach first.

Next Steps

Stop applying to banks that will reject you. Stop letting realtors refer you to their “preferred lender” who only does conventional loans. Start working with brokers who specialize in making difficult deals work.

The Mortgage Universe doesn’t just search multiple lenders. We search the entire lending universe for solutions banks won’t offer. Available nearly 24/7 because deals don’t wait for business hours.