In a metro where a typical rental costs a fraction of a coastal California home, a $1.5M loan is unusual. When we see one in Bakersfield, it is almost always a newer 5-8 unit building, a large executive home, or an investor consolidating several rentals.
In short: LendingStreet makes jumbo DSCR loans of about $1.5M to $5M+ on high-value 1-8 unit rentals in Bakersfield, for purchase, rate-and-term and cash-out, qualified on rent with no tax returns. Larger balances get more review, and max LTV can be lower, varying by program. In Bakersfield, these balances usually mean a 5-8 unit building, a luxury home, or several properties.
Being honest about the market helps you choose the right loan. Single-family homes priced above $1.5M are rare and concentrated in a few areas, and they rarely rent for enough to support high leverage.
Most jumbo-sized requests we see in Kern County come from experienced local investors who have outgrown fourplexes, or from out-of-area investors buying newer small apartment buildings for steadier cash flow than coastal markets offer.
| Property type | Where | How it usually pencils |
|---|---|---|
| Newer 7-8 unit building | Southwest and Northwest corridors, near CSUB | Strongest; combined rent supports the loan |
| Luxury single-family home | Seven Oaks, Stockdale Estates, Haggin Oaks, near the country clubs | Rent is low relative to price; needs low leverage |
| Several rentals | Across the metro | Often better as a blanket portfolio loan |
This example is illustrative and not a quote. Scenario one is a newer eight-unit building priced at $1,720,000, with units renting for $1,725, or $13,800 a month combined. At 70% LTV the loan is $1,204,000, estimated principal and interest is about $8,410, and with taxes of about $1,648 and insurance of $900 the payment is about $10,959. DSCR is about 1.26x.
Scenario two is a $1,650,000 Seven Oaks home that leases for $6,200. At 70% LTV the loan is $1,155,000 and the payment is about $10,099, a DSCR of about 0.61x. Even at 50% LTV, the loan is $825,000, the payment is about $7,794, and DSCR is about 0.80x.
The eight-unit building clears the 1.0x standard minimum with room to spare. The luxury home does not reach it even at half the price financed, which is typical at the top of this market.
| Item | 8 units, 70% LTV | Luxury home, 70% LTV | Luxury home, 50% LTV |
|---|---|---|---|
| Loan amount | $1,204,000 | $1,155,000 | $825,000 |
| Estimated principal and interest | $8,410 | $8,068 | $5,763 |
| Taxes and insurance | $2,548 | $2,031 | $2,031 |
| Total monthly payment | $10,959 | $10,099 | $7,794 |
| Monthly rent | $13,800 | $6,200 | $6,200 |
| DSCR | 1.26x | 0.61x | 0.80x |
At the high end of Bakersfield's single-family market, rents do not rise in step with prices. A luxury home can still be a good investment for appreciation, but it usually needs a large down payment, a sub-1.0 program, or both.
Multi-unit buildings spread the price across several rents, which is why most of our large Bakersfield DSCR loans are on 5-8 unit properties.
If you want the luxury home for long-term appreciation, size the loan to the rent rather than the price. Bringing more cash at closing, or pairing the home with stronger-cash-flow properties in a portfolio, are the usual paths.
Do not plan on short-term rental income to close the gap without checking local rules and real demand. Bakersfield is mainly a long-term rental market.
Your tax bill resets to the purchase price when you buy, and on a large balance that is a meaningful monthly number. Check for Mello-Roos or special assessments, which are common in newer Northwest and Southwest developments.
On a cash-out or rate-and-term refinance of a property you already own, the assessment does not reset.
A supplemental tax bill usually follows a purchase. On a large price, set aside reserves for it.
Larger loans get more review. Expect a detailed appraisal, possibly a second valuation, higher reserves and a closer look at your experience owning similar properties.
Expect the appraisal to take longer. Comparable sales for large buildings and luxury homes are thin in Bakersfield, so the appraiser may need to look farther afield or use an income approach.
Statewide, California insurers have become selective, and a large building or luxury home needs a policy with enough coverage for full replacement cost. Some properties end up with a FAIR Plan policy plus a supplemental policy. Get quotes early.
Replacement cost, not market value, drives the insurance number. On a newer eight-unit building, that figure can be substantial, so budget the premium carefully in your DSCR estimate.
If you own five or more Bakersfield rentals and want to borrow $1.5M or more against them, a blanket portfolio loan may fit better than a single jumbo loan. It combines properties under one loan, qualifies on portfolio cash flow and has release provisions.
See our California jumbo page and national jumbo guide for more.
A blanket loan can also help when individual properties are too small to qualify on their own. Portfolio pricing and one payment simplify management for larger local investors.
Send the address, rent roll, purchase price or current balance, and your plan. Call (877) 298-1001 or use the form below.
Include any recent capital work, such as roofs or HVAC, since it supports value and helps with insurance.
Owners who bought or built small apartment buildings years ago may have a low Prop 13 assessment and substantial equity. A jumbo cash-out refinance can unlock that equity without selling, and because the refinance is not a change in ownership, the tax bill stays on its existing track.
Larger cash-out loans get extra scrutiny on reserves and the rent roll, and max LTV can be lower than on smaller loans. Run the ratio at a conservative LTV first, then see how much more the rent can carry.
Yes, on 1-8 unit rentals. In this market they are usually on 5-8 unit buildings, luxury homes with low leverage, or as part of a portfolio.
It varies by program, and larger balances often have lower limits than smaller loans. The rent also has to clear the minimum DSCR.
Rents at the top of the Bakersfield market are low relative to prices, so the rent covers less of the payment. More down payment improves the ratio.
Yes. Jumbo DSCR loans cover cash-out up to program limits, and the Prop 13 assessment does not reset on a refinance.
If you are borrowing against five or more properties, a blanket portfolio loan often fits better. For one high-value property, a jumbo loan is the tool.
No. Jumbo DSCR loans qualify on rent, credit and reserves, not personal income documents.
Those are commercial loans. See our multifamily page.
Usually longer than a standard loan, because the appraisal and review are more detailed. Gather leases, rent rolls and reserve statements early.
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