Investment Property Loans in Scranton, PA

Buying a rental in Scranton, Pennsylvania usually comes down to four loan families: a conventional investment loan underwritten on your full income, a DSCR loan that leans on the property's rent, a portfolio loan from a lender that keeps its own loans, and short-term hard money. Which one fits depends on how you earn, how many properties you own, the home's condition and how fast you need to move.

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Call to speak with a licensed loan officer about investment property loans for a property in Scranton. Programs vary by borrower, property and investor.

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Investment property lending in Lackawanna County

680Loans on investment properties in Lackawanna County (2024)

16.7%Share of all home loans

$155,000Median investor purchase loan (2024)

$1,000Median gross rent

Lenders made 680 loans on investment properties in Lackawanna County in 2024, 16.7% of all home loans there. The median rent in Scranton is about $1,000 a month. Whether a conventional investment loan, a DSCR loan or a portfolio loan fits usually comes down to how you document income and how many properties you already finance.

Matching the loan type to your situation

Start with how you document income. If your tax returns show steady wages or business income that covers your debts, a conventional investment loan following Fannie Mae or Freddie Mac rules is often the first place to look. If your returns show heavy write-offs, a DSCR loan that qualifies mainly on the property's rent may fit better.

Next, look at the property and your count of financed homes. A rental that needs major work, or an investor who has passed agency limits, may point toward a portfolio lender or a short-term loan with a plan to refinance later. A Scranton loan officer can map your facts to these options in one conversation.

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Prefer to talk first? Call (888) 865-8230. Applying is not a loan approval or commitment to lend; programs vary by borrower, property and investor. ClearPoint Mortgage Advisors, NMLS #173855. Properties in FL, NY, NJ, PA, CT and VA only.

Investment, second home or primary residence: getting the label right

Lenders sort every home by how you will use it. A primary residence is where you live most of the time. A second home is one you use yourself for part of the time, that is not rented full time and is not a timeshare. An investment property is rented out or held for income.

The label drives the loan type, the pricing and the documents. Pick the one that matches your real plan for the Scranton property. Misrepresenting occupancy on a loan application is mortgage fraud, and lenders verify it after closing. If your plans may change, explain them to the loan officer before you apply.

Who this tends to fit

You plan to buy in your own name or through an LLC
Your tax returns may or may not support another mortgage
The home you want needs work before it can be rented
You own several rentals and are nearing agency limits
You need to decide whether a home is a second home or a rental

Scranton offices and Pennsylvania rules for investors

Rental registration: Rental Licensing (RENTAL Ordinance of 2022) (City of Scranton). All rental properties must be licensed with the city, with yearly renewals and new units licensed within 30 days of tenancy. Licensed rentals get periodic health and safety inspections and must pass to keep the license. Lenders and insurers may ask whether a rental is registered.
Property assessment: Lackawanna County Assessment Office. Homeowners return the homestead/farmstead exclusion application, which lowers the assessed value of a qualifying primary residence before property tax is calculated, to the Lackawanna County Assessment Office.

Pennsylvania landlord-tenant law: The Landlord and Tenant Act of 1951. Pennsylvania's main landlord-tenant statute, covering leases, recovery of rent, security deposit (escrow) rules, and recovery of possession. Leases you show a lender should follow it.

How lenders in Scranton count rental income

Your rental history matters. Lenders reviewing a conventional investment loan look at Schedule E on your tax returns, which reports rents and expenses on properties you already own. If a rental is held in a business, they may look at business returns instead.

For the home you are buying, the lender may rely on a current lease if a tenant is in place, or on the appraiser's rent schedule if it is vacant. A DSCR lender usually focuses on the property's rent alone. Bring every lease and your last two tax returns to the first call so the loan officer can tell you which treatment helps your file.

Before you call

The property listing, with notes on condition and expected rent
A list of every mortgage you carry
Your preference for buying in your own name or an LLC
Leases on any rentals you already own
Your last two tax returns, including Schedule E if you own rentals

Questions Scranton investors ask about investment property loans

What counts as an investment property for a loan?

A home you rent out or hold for income rather than live in. Lenders separate it from a primary residence, where you live, and a second home, which you use some of the time and do not rent full time. The category affects pricing, documents and the down payment. Be accurate: misrepresenting occupancy on a loan application is mortgage fraud.

Can I use expected rent to qualify for my first rental?

Some programs let you count rent from the home you are buying, using a lease or an appraiser's market rent estimate, and some limit how first-time landlords may use it. DSCR loans rely on the property's rent by design. Ask each lender how it treats rent for someone without a history of managing rentals.

When does hard money make sense for a rental purchase?

Hard money is short-term, asset-based financing, usually used when a home needs work or a deal has to move faster than a bank can. It costs more in exchange for speed and flexibility and is usually a business-purpose loan. Most investors use it as a bridge, planning to refinance into a longer-term loan or sell.

How do I compare offers on a rental in Pennsylvania?

Ask every lender for a Loan Estimate or written term sheet for the same property and the same down payment. Compare the rate type, lender fees, any prepayment penalty, reserve requirements and how rent is counted. Check each lender's and loan officer's license on NMLS Consumer Access. Offers are subject to credit approval.

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Get answers about investment property loans for a property in or around Scranton. Subject to credit approval; programs vary.