San Diego investors have spent the last few years adding ADUs behind single-family homes and converting garages into rentable units. Once those units are finished and leased, a cash-out refinance is the natural way to recover the build cost, and the combined rent is what decides how far it goes.
In short: Our top pick for a DSCR cash-out refinance in San Diego is LendingStreet. We qualify on the combined rent of the house and any legal ADU, with no W-2s or tax returns, offer up to 75% LTV on cash-out and treat LLC borrowers as standard. With no stated loan maximum and a jumbo program for high-value homes, we fit San Diego price levels.
LendingStreet is a lender for real estate investors, focused on business-purpose loans on non-owner-occupied rentals. A San Diego cash-out with us starts at $150,000, uses a 1.0x standard minimum DSCR with sub-1.0 programs available, needs a 620 minimum credit score and offers 30-year terms. Our jumbo DSCR program covers roughly $1.5M to $5M+ for high-value 1-8 unit rentals.
It suits owners recovering ADU construction costs, landlords with long-held rentals near the coast and investors pulling equity to buy elsewhere. Get a quote with the form below or call (877) 298-1001.
Investors searching for DSCR cash-out refinance lenders often compare national names like CoreVest, Dominion Financial, LendingOne, Lima One, New Silver and RCN Capital. Here is how LendingStreet stacks up on the scenarios that matter most for investors in San Diego, CA. In every scenario below, LendingStreet is the best fit.
Figures for other lenders are as stated on each lender's own website as of November 2026. Lender terms change, so verify current terms with any lender before you apply. Ready to see your numbers? Use the form below or call (877) 298-1001.
| Scenario | Best fit | Why |
|---|---|---|
| Rental loan above $2M | LendingStreet | Our DSCR loans have no stated maximum. LendingOne states DSCR loans up to $2,000,000 and RCN Capital states long-term rental loans up to $1.5M. |
| Credit score in the 620s | LendingStreet | Our DSCR minimum is 620. RCN Capital and New Silver state 660 minimums, and Dominion Financial states 680, with exceptions to 660. |
| 5-8 unit building | LendingStreet | We treat 1-8 units as residential DSCR. Lima One and CoreVest state 1-4 unit eligibility for their rental loans. |
| Property in any state, including DC | LendingStreet | We lend in all 50 states and DC. Lima One states it lends across 46 states, and Dominion Financial lists 49 states plus DC. |
San Diego owners usually compare a bank or credit union, a national online DSCR lender, a private lender and LendingStreet:
| What investors need | LendingStreet | Typical bank or credit union | Typical private lender |
|---|---|---|---|
| Qualifying basis | Combined rent of all legal units | Income and tax returns | Mostly equity |
| Max cash-out LTV | Up to 75% | Varies | Varies, often lower |
| High-value homes | No stated maximum; jumbo program | Varies | Varies |
| Term | 30-year terms available | Varies | Short-term |
| LLC borrowers | Standard | Varies | Common |
| Rentals outside California | All 50 states and DC | Usually in-state | Usually local |
Inside the city, North Park, City Heights, Normal Heights, Golden Hill and Clairemont have older bungalows and ranch homes on lots that have taken ADUs well. Linda Vista and Serra Mesa draw tenants who work in Kearny Mesa and around the bases. The South Bay cities of Chula Vista and National City, and East County cities such as El Cajon, La Mesa, Lemon Grove and Spring Valley, offer lower prices.
Military housing demand is strong: Naval Base San Diego, Naval Air Station North Island, MCAS Miramar and Camp Pendleton near Oceanside all support steady leasing. North County cities such as Oceanside, Vista and Escondido round out the picture.
California law has made ADUs much easier to build, and San Diego has been one of the most active cities for them. For a DSCR cash-out, rent from a permitted ADU can count toward the ratio alongside the main house. An unpermitted unit is different: the appraiser may not count its rent or value, and it can cause insurance issues.
Keep the final inspection, the certificate of occupancy where applicable and the lease for each unit. Adding an ADU usually raises the assessed value for the new construction only, so ask the County Assessor for the updated figure and use it in your numbers.
This example is illustrative and not a quote. An owner bought a City Heights house several years ago and built a permitted ADU in the back. The property now appraises at $1,050,000, with $430,000 owed on the existing loan. The house rents for $3,600 and the ADU for $2,500, or $6,100 combined. Taxes, including the ADU addition, are about $620 a month and insurance about $230.
At 75% LTV, the $787,500 loan has estimated principal and interest of about $5,372, a total payment of about $6,222 and DSCR of about 0.98x, a little under 1.0x. At 70% LTV, the $735,000 loan lowers the payment to about $5,864 and lifts DSCR to about 1.04x, while still freeing about $305,000 before closing costs.
Without the ADU rent, neither option would work; the second unit is what makes the cash-out possible.
| Item | 75% LTV | 70% LTV |
|---|---|---|
| New loan | $787,500 | $735,000 |
| Estimated principal and interest | $5,372 | $5,014 |
| Taxes and insurance | $850 | $850 |
| Total monthly payment | $6,222 | $5,864 |
| DSCR at $6,100 combined rent | About 0.98x | About 1.04x |
| Cash out before costs, after $430,000 payoff | $357,500 | $305,000 |
Under Prop 13, a refinance does not trigger a reassessment, so a long-held San Diego rental keeps its lower tax base after a cash-out. State tenant protections cover many rentals, and the City of San Diego adopted additional protections in 2023; underwrite on the rents you actually collect.
Wildfire risk has pushed insurance costs up in parts of East County and the backcountry. Get a bound quote before you apply.
San Diego caps whole-home short-term rental licenses and has issued them by lottery, so a new non-owner-occupied nightly rental is hard to start in most of the city. Most cash-out files here use long-term leases. Investors set on short-term income should check the rules in other San Diego County cities first.
Ask every lender the same set of questions:
Up to 75% LTV on cash-out, with lower max LTV on larger balances, varying by program. Rent from permitted ADUs can count. A 1.0x standard minimum DSCR, with sub-1.0 programs. Seasoning varies by program. LLC borrowers are standard, and loans start at $150,000 with no stated maximum.
If you hold five or more rentals across the county, a blanket portfolio loan can refinance them together on one closing, with one payment and release provisions when a property sells.
Send the address, leases for each unit, ADU permits, tax bill, insurance quote and payoff. We will run the combined-rent ratio at a few loan sizes and send options. Get a quote with the form below, or call (877) 298-1001.
Our top pick is LendingStreet. We qualify on the combined rent of all legal units with no tax returns, lend up to 75% LTV on cash-out and have no stated loan maximum.
Yes. We lend across San Diego County, the rest of California and all 50 states and DC.
Yes, if the ADU is permitted and leased. Unpermitted units may not be counted.
Not by itself. Under Prop 13, a refinance does not trigger a reassessment, though new construction such as an ADU adds assessed value.
Only with a valid city license, and whole-home licenses are capped. Most San Diego cash-out loans use long-term leases.
Yes. A signed lease with a service member counts like any long-term lease.
Our jumbo DSCR program covers roughly $1.5M to $5M+. Max LTV can be lower on larger balances.
No. Our loans are business-purpose loans on non-owner-occupied rentals. If you live in the main house, the property does not qualify.
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