Los Angeles investors juggle high prices, rent control, wildfire-driven insurance costs and a city that bans non-owner-occupied short-term rentals. The right DSCR loan cuts through the paperwork: the property's rent qualifies the loan, and your tax returns stay in the drawer.
In short: LendingStreet is our top pick for a DSCR loan in Los Angeles. We qualify on the property's rent with no W-2s or tax returns, lend up to 80% LTV on purchases and 75% on cash-out, and close in your LLC. Loans start at $150,000 with no stated maximum, so a $1M+ duplex or a home with an ADU fits, and sub-1.0 DSCR programs help when LA prices outrun the rent.
LendingStreet finances LA rentals from 1 to 8 units: single-family homes with permitted ADUs, duplexes, triplexes, fourplexes and small apartment buildings. We do purchases, rate-and-term refinances and cash-out refinances.
It fits self-employed investors, landlords who have maxed out conventional financing, and owners who hold property in an LLC. On large balances, max LTV can be lower, and pricing is set case by case.
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 Los Angeles, CA, 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. |
Investors in LA usually compare banks, hard money lenders, national online DSCR lenders and private money. For a long-term hold, the comparison looks like this:
| Factor | LendingStreet | Bank or credit union | Private or hard money lender |
|---|---|---|---|
| Qualifying method | Property cash flow (DSCR) | Borrower income and tax returns | Asset-based; varies |
| Leverage | Up to 75% LTV on cash-out, 80% on purchase | Varies; often lower on investment property | Varies |
| Term | 30-year terms available | Varies | Usually short-term |
| Entity borrowing | LLC borrowers standard | Varies | Common |
| Minimum credit score | 620 | Varies | Varies |
| Footprint | All 50 states and DC | Mostly local | Varies |
Small multi-unit buildings from the 1920s through the 1960s fill neighborhoods such as Highland Park, Eagle Rock, Mid-City, Koreatown, Echo Park and South LA. In the San Fernando Valley, Van Nuys, North Hollywood, Reseda and Panorama City offer single-family homes, many now with ADUs, plus older fourplexes.
Across the county, Long Beach, Inglewood, Pomona and Whittier have their own rent rules and price levels, and the Antelope Valley (Lancaster and Palmdale) offers lower prices and stronger rent coverage.
Long-time LA owners are often the best candidates for a cash-out. Because Prop 13 keeps their tax bill tied to an older assessment, and a refinance does not reset it, the ratio on a building bought years ago can support a much larger loan than a new purchase of the same building. Cash-out goes up to 75% LTV, lower on some large balances.
In the City of LA, the Rent Stabilization Ordinance (RSO) generally covers units in buildings of two or more units first occupied on or before October 1, 1978. That captures many classic duplexes and fourplexes. Allowed increases are set annually, so underwrite on current rents.
Units outside the RSO may fall under California's Tenant Protection Act, which caps annual increases on many rentals, and the city adds just-cause eviction rules. Cities such as Santa Monica, West Hollywood and Long Beach have their own rules. Confirm coverage before you assume rent growth.
Under Proposition 13, property tax starts at 1% of assessed value plus local voter-approved assessments, and the assessment resets to the purchase price when you buy. Use your purchase price, not the seller's bill. A refinance does not trigger reassessment.
Insurance has become one of the biggest variables in LA. After the January 2025 wildfires, many insurers tightened coverage in fire-prone hillside areas, and some owners rely on the state's insurer of last resort plus a separate policy. Earthquake coverage is usually separate too. Get a quote before you lock in your offer. On an exit, the City of LA's Measure ULA adds a transfer tax on sales above a high threshold.
The City of LA's Home-Sharing Ordinance limits short-term rentals to a host's primary residence, so a non-owner-occupied investment property cannot legally operate as a nightly rental in the city. We underwrite city rentals on long-term leases. If short-term rental income is the goal, look at California markets outside the city where local rules allow it, and see our short-term rental page.
This example is illustrative and not a quote. An investor buys a Van Nuys single-family home with a permitted detached ADU for $1,050,000. The main house rents for $4,400 and the ADU for $2,600, a combined $7,000. Taxes are budgeted on the purchase price at $1,050 a month, and insurance is $280.
At 75% LTV the loan is $787,500, estimated principal and interest is about $5,372, the payment is about $6,702 and DSCR is about 1.04x. At 70% LTV the loan is $735,000, the payment is about $6,344 and DSCR rises to about 1.10x. Without the ADU rent, neither version would reach 1.0x.
| Item | 75% LTV | 70% LTV |
|---|---|---|
| Loan amount | $787,500 | $735,000 |
| Estimated principal and interest | $5,372 | $5,014 |
| Taxes | $1,050 | $1,050 |
| Insurance | $280 | $280 |
| Total payment | $6,702 | $6,344 |
| DSCR at $7,000 rent | About 1.04x | About 1.10x |
Use this checklist with every lender on your shortlist, including us:
Our answers: up to 75% LTV on cash-out and up to 80% on purchase; LLCs borrow as standard; a 1.0x standard DSCR with sub-1.0 options; seasoning by program; loans from $150,000 with no stated maximum, where larger balances get more review; a timeline we set with you once title and valuation are ordered; and 620 minimum credit.
Our top pick is LendingStreet. We qualify on rent with no tax returns, lend up to 80% LTV on purchases, count permitted ADU rent, close in your LLC and have no stated maximum loan size.
Yes. We finance non-owner-occupied 1-8 unit rentals across the City and County of Los Angeles, including the Valley, South LA, Long Beach and the Antelope Valley.
Yes. We underwrite on current rents, which is what the ratio needs for a rent-controlled building.
Yes, when the ADU is permitted and leased or supported by market rent. Unpermitted units are not counted.
Not in the City of LA, where home-sharing is limited to primary residences. Some other California markets allow non-owner-occupied short-term rentals.
No. Under Prop 13, a refinance does not trigger reassessment; a purchase does.
Put more down or use one of our sub-1.0 DSCR programs. Get the insurance quote early so there are no surprises.
No. We make business-purpose loans on non-owner-occupied investment property only.
2-3 competing quotes from 30+ capital sources. No credit pull. No commitment.
By clicking, you provide express written consent to be contacted by LendingStreet (NMLS #1734316) via SMS, phone, or email, possibly using automated technology, regarding your loan inquiry. Reply STOP to opt out. Consent is not required to obtain services. See our Privacy Policy and Terms.