Sacramento draws rental investors who want California appreciation at a lower entry price than the Bay Area. The tradeoff is thinner rent-to-price ratios, so the lender you choose, and how it sizes the loan on rent, matters more here than in most metros.
In short: Our top pick for Sacramento DSCR loans is LendingStreet. We qualify on the property's rent with no W-2s or tax returns, LLC borrowers are standard, and loans start at $150,000 with no stated maximum. Purchases go up to 80% LTV and cash-out refinances up to 75%, with 30-year terms and a 620 minimum credit score. Because Sacramento rents can be tight against price, we also offer sub-1.0 DSCR programs. Get a quote with the form below or call (877) 298-1001.
LendingStreet is built for investors buying, refinancing and cashing out 1 to 8 unit rentals across Sacramento, Placer, Yolo and El Dorado counties. Every loan is a business-purpose loan on non-owner-occupied property, so the file is judged on the rental, not your paystubs.
It fits Bay Area investors adding a Sacramento door, self-employed buyers whose tax returns understate income, and local landlords who want to pull equity from a duplex or fourplex they bought years ago. To start, 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 Sacramento, 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. |
Inside the city, Midtown, East Sacramento, Land Park and Curtis Park hold older bungalows, Craftsman homes and small multi-unit buildings that lease to downtown and state government workers. Oak Park and Del Paso Heights offer lower entry prices and duplexes. Natomas has newer tract homes in a levee-protected basin.
In the suburbs, Elk Grove, Rancho Cordova, Citrus Heights, Arden-Arcade, Roseville and Folsom offer newer single-family homes that rent to families. Many newer subdivisions in Elk Grove, Natomas and Folsom carry community facilities district (Mello-Roos) taxes, which belong in your ratio.
Sacramento investors usually weigh a local bank or credit union, a hard money lender, or a national DSCR lender. Banks can offer good terms to borrowers with clean, high tax-return income, but many investors do not fit that box. Hard money is quick but short-term. LendingStreet pairs rent-based qualifying with long-term terms.
| What investors need | LendingStreet | Typical local bank or credit union | Typical hard money lender |
|---|---|---|---|
| Qualify on the rent, not your tax returns | Yes, DSCR loans qualify on the property's rent | Often asks for tax returns and personal income | Asset-based, but built for short holds |
| Close in your LLC | Standard | Varies; may require commercial terms | Common |
| Long-term financing | 30-year terms available | Often shorter terms or balloons on investor loans | Usually short-term only |
| Purchase leverage | Up to 80% LTV | Varies by bank | Varies; often tied to cost |
| Cash-out refinance | Up to 75% LTV | Varies by bank | Rarely a long-term option |
| Loan size | From $150,000, no stated maximum | Varies; may be capped | Varies |
| Lends beyond Sacramento | All 50 states and DC | Usually a local footprint | Often regional |
Under Proposition 13, the base property tax is about 1% of assessed value plus voter-approved bonds and special assessments, and a sale resets the assessed value to your purchase price. That means the seller's bill, often based on a value set years ago, can be far below yours. Budget on your price plus any Mello-Roos line.
Sacramento County charges a documentary transfer tax on sales, and the City of Sacramento adds its own transfer tax on top. Who pays is set by your contract and local custom, so confirm with your escrow officer.
California's homeowners insurance market has tightened, and fewer carriers are writing new policies in some areas, especially in the wildfire-exposed foothills of Placer and El Dorado counties. Natomas and other low-lying areas may need flood coverage. Get a real landlord policy quote before you remove contingencies.
California's Tenant Protection Act caps annual rent increases for many rentals at 5% plus inflation, with a 10% maximum, and adds just-cause eviction rules. Some single-family homes can be exempt if conditions and notice rules are met. The City of Sacramento also runs a rental housing inspection program and its own tenant protections. Underwrite on today's rent, not a future increase.
The City of Sacramento requires an annual short-term rental permit and collects transient occupancy tax on stays of 30 days or less. Under the city's published rules, a home that is not the operator's primary residence needs a conditional use permit to rent short-term for more than 90 days a year, so a full-time investor STR inside the city takes extra approval. HOAs can also prohibit nightly rentals. Confirm current rules with the city or county, and see our STR program if the property qualifies.
This example is illustrative and not a quote. An investor buys an Oak Park duplex for $520,000. Each unit leases for $1,850, so total rent is $3,700 a month. Taxes, budgeted on the new purchase price, are $540 a month and the landlord policy is $185.
At 80% LTV the loan is $416,000, estimated principal and interest is about $2,768, and the total payment is about $3,493, for a DSCR of about 1.06x. At 75% LTV the loan is $390,000, the payment drops to about $3,320, and DSCR rises to about 1.11x, a bigger cushion for $26,000 more down.
| Item | 80% LTV | 75% LTV |
|---|---|---|
| Purchase price | $520,000 | $520,000 |
| Loan amount | $416,000 | $390,000 |
| Down payment | $104,000 | $130,000 |
| Estimated principal and interest | $2,768 | $2,595 |
| Property taxes | $540 | $540 |
| Insurance | $185 | $185 |
| Total monthly payment | $3,493 | $3,320 |
| DSCR at $3,700 rent | About 1.06x | About 1.11x |
Before you pick any lender, ask the same questions of each one and get the answers in writing.
Here is how LendingStreet answers: up to 80% LTV on purchases, up to 75% on cash-out and up to 80% on rate-and-term on some programs. The standard minimum is 1.0x, with sub-1.0 programs available. Seasoning varies by program, LLC borrowers are standard, and we lay out the timeline when we review your file. There is no stated maximum loan size, though max LTV can be lower on larger balances and 5 to 8 units.
Send the address, price or value, current or market rent, and your target leverage. We will run the ratio on a realistic Prop 13 tax figure, check it at a few loan amounts and walk you through the options. Use the form below or call (877) 298-1001. For 9 or more units, see our commercial page.
Our top pick is LendingStreet. We qualify on the property's rent with no tax returns, lend to LLCs, offer 30-year terms, and have sub-1.0 DSCR programs for tight Sacramento rent-to-price ratios.
Yes. We finance 1 to 8 unit investment rentals throughout Sacramento and the surrounding counties, and in all 50 states and DC.
Prop 13 resets assessed value to your purchase price when you buy. The seller's bill may reflect a much older value, so budget on your price plus any bonds and Mello-Roos.
It limits how fast you can raise rent on many units, so we qualify on current or market rent rather than projected increases. Check whether your property is covered.
Only where it can legally operate. The city requires a permit, and a non-primary residence needs added approval to rent short-term more than 90 days a year. Confirm with the city first.
Yes. Cash-out goes up to 75% LTV, and seasoning varies by program. The rent still has to support the new payment.
The minimum is 620. Stronger credit and a higher ratio can open more leverage and better pricing.
Yes. We finance 1 to 8 units. Max LTV can be lower on 5 to 8 units and larger balances, and it varies by program.
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