Chicago is a two-flat town. Its brick two- and three-flats, greystones and small courtyard buildings are some of the best small-investor stock in the country, and Cook County property taxes are the number that most often decides whether the deal works.
In short: Our top pick for a DSCR loan in Chicago is LendingStreet. We qualify on the building's rent with no tax returns, lend up to 80% LTV on purchases and 75% on cash-out, and close in your LLC. We finance 1-8 unit rentals across the city and suburbs, from $150,000 with no stated maximum, and we run the ratio on the real Cook County tax bill so the loan holds up.
LendingStreet finances the buildings Chicago investors actually own: two-flats, three-flats, greystones, small 4-8 unit buildings and single-family rentals. We do purchases, rate-and-term refinances and cash-out refinances, with 30-year terms available.
It fits self-employed investors, landlords who have outgrown a bank's debt-to-income limits, and anyone buying in an LLC. Max LTV can be lower on 5-8 unit buildings and larger balances.
To see your numbers, get a quote with the form below or call (877) 298-1001.
If you are weighing CoreVest, Dominion Financial, LendingOne, Lima One, New Silver and RCN Capital for a DSCR loan for investors in Chicago, IL, this is the short version: LendingStreet wins the scenarios below, and you can get a quote with the form below.
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. |
Chicago has many community banks that lend on small buildings, often with shorter terms or balloons and full income documentation. Hard money is common for rehabs but is short-term. For a long-term hold, here is the comparison:
| What investors need | LendingStreet | Typical bank or credit union | Typical hard money lender |
|---|---|---|---|
| How you qualify | On the property's rent, no W-2s or tax returns | Usually personal income, tax returns and debt-to-income | Mostly the deal; income review varies |
| Purchase leverage | Up to 80% LTV | Varies; often conservative on rentals | Varies |
| Loan term | 30-year terms available | Varies; some portfolio loans balloon | Usually short-term, interest-only |
| Borrowing in an LLC | Standard | Varies; may require personal borrowing | Common |
| Loan size | From $150,000, no stated maximum | Depends on the bank's appetite | Varies |
| Where they lend | All 50 states and DC | Usually a local footprint | Often regional |
On the Northwest Side, Logan Square, Avondale, Portage Park and Albany Park are full of brick two-flats and bungalows. Pilsen, McKinley Park and Bridgeport on the Southwest Side offer older frame and brick multi-unit buildings, and Rogers Park and Edgewater have courtyard buildings and condos near the lake.
On the South and West Sides, neighborhoods such as Chatham, Austin and Humboldt Park offer lower prices and higher rent-to-price ratios, with more variation block by block. In the suburbs, Oak Park, Berwyn, Cicero, Evanston, Aurora, Elgin and Joliet each have their own tax rates and rental licensing rules.
| Area | Typical stock | Watch for |
|---|---|---|
| Northwest Side | Brick two-flats, bungalows | Rising assessments |
| Southwest Side | Frame and brick multi-units | Older systems and insurance |
| North lakefront | Courtyard buildings, condos | Condo leasing rules |
| Inner suburbs | Two-flats, single-family | Local rental licensing |
Cook County assesses residential property at 10% of market value, its assessment ratio, then applies a state equalizer and local tax rates. The city is reassessed every three years, and recent reassessments raised many bills. The homeowner exemption only applies to an owner-occupied home, so it comes off when an investor buys.
Use the most recent full bill, remove any homeowner or senior exemptions, and look up the property on the Assessor's site. If an appeal is pending, do not count on the result. Chicago's real estate transfer tax applies on a sale, not a refinance.
That matters for refinances too. Many Chicago owners bought two-flats years ago and now hold real equity. A cash-out up to 75% LTV can fund the next building, but the new, larger payment still has to clear the ratio at today's tax bill, not the one you paid when you bought. If the ratio is tight, a rate-and-term refinance or a smaller cash-out can be the better fit, and we will show you both.
The Chicago Residential Landlord and Tenant Ordinance (RLTO) covers most rentals, with an exemption for owner-occupied buildings of six units or fewer, so investor-owned two-flats are covered. Its security deposit rules are strict. Illinois law bars local rent control, so rents follow the market.
Chicago's Shared Housing Ordinance requires short-term rental registration, some precincts have restricted new rentals, and many condo buildings ban them. Most Chicago DSCR loans are underwritten on 12-month leases.
This example is illustrative and not a quote. An investor buys a brick two-flat for $640,000. The units rent for $2,300 and $2,200, or $4,500 combined. Taxes are budgeted at $800 a month with no homeowner exemption, and insurance is $180.
At 80% LTV the loan is $512,000, estimated principal and interest is about $3,493, and the payment is about $4,473, for a DSCR of about 1.01x. At 75% LTV the loan is $480,000, the payment is about $4,254 and DSCR is about 1.06x. Both clear 1.0x, but the cushion is thin, so a higher tax bill could change the answer.
| Item | 80% LTV | 75% LTV |
|---|---|---|
| Loan amount | $512,000 | $480,000 |
| Down payment | $128,000 | $160,000 |
| Estimated principal and interest | $3,493 | $3,274 |
| Taxes and insurance | $980 | $980 |
| Total payment | $4,473 | $4,254 |
| DSCR at $4,500 rent | About 1.01x | About 1.06x |
Whoever you talk to, ask the same questions so you can compare offers side by side. Here is the short list:
Here is how LendingStreet answers: cash-out up to 75% LTV (purchase up to 80%), with max LTV varying by program on 5-8 units and larger balances; 1.0x standard DSCR with sub-1.0 programs; seasoning that varies by program; LLC borrowers as standard; a closing plan set once we review the property and title; loans from $150,000 with no stated maximum; and a 620 minimum credit score.
Many Chicago buildings are close to a century old. Insurers look at roofs, porches, electrical, boilers and basement flooding, and a recent inspection report can help. Send the address, price or value, leases, the latest tax bill and your target loan amount. Get a quote with the form below or call (877) 298-1001.
Our top pick is LendingStreet, because we qualify on rent with no tax returns, lend up to 80% LTV on purchases with 30-year terms, close in your LLC and finance two-flats through 8-unit buildings.
Yes. We finance non-owner-occupied 1-8 unit rentals across Chicago and Cook, DuPage, Kane, Will and Lake counties.
Yes. Two- and three-flats are among the most common properties we finance in Chicago, and both units' rent counts.
Often because the homeowner exemption came off, or a reassessment raised the bill. Always budget on the full rate with no exemptions.
If you do not live in it, almost certainly. The owner-occupied exemption covers only buildings of six or fewer units where the owner lives.
Only if registration, precinct rules and building rules allow it. Most Chicago rentals are financed on long-term leases.
Those are commercial loans. See our commercial page for larger buildings.
No. Our DSCR loans are business-purpose loans on non-owner-occupied investment property.
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