Most large Phoenix rental loans are not vacation homes. They are executive homes in Arcadia, the Biltmore area and North Central, and newer houses in Chandler, Gilbert and north Phoenix leased to professionals on one- and two-year terms.
In short: LendingStreet finances $500K to $1M+ rentals across the Phoenix metro with DSCR loans that qualify on the property's rent, with no W-2s or tax returns and LLC borrowers allowed. Loans start at $150,000 with no stated maximum, rates start at 6.125% for well-qualified borrowers, and purchases go up to 80% LTV, often less on large balances. In Phoenix, large files usually turn on desert-specific property details, such as leased solar panels, pools, roofs and cooling systems, plus HOA rules and Arizona's rental registration requirement. Short-term rentals are allowed under state law but require local permits, so confirm the rules for your city.
In the city, the highest-priced rentals are in Arcadia, the Biltmore area, North Central and around the Phoenix Mountains Preserve, along with luxury condos near Camelback Road. Paradise Valley, a separate town, has estate homes on large lots. Ahwatukee and Desert Ridge offer large newer homes at somewhat lower prices.
In the East Valley, Chandler and Gilbert have master-planned communities close to major semiconductor, tech and finance employers. In the West Valley, Peoria and the northern edges of Glendale add newer homes. Scottsdale is its own market with a heavier vacation rental focus; see our Scottsdale page for that.
This table shows how the common Phoenix paths compare. Details vary by program.
| Item | Central Phoenix luxury home | East Valley executive home | Phoenix STR |
|---|---|---|---|
| Example areas | Arcadia, Biltmore, North Central, Paradise Valley | Chandler, Gilbert, Ahwatukee, Desert Ridge | Licensed homes where city and HOA allow |
| Rent used | Long-term leases | Long-term leases | Projected STR revenue |
| Main approval issue | Ratio on one rent; unusual homes | HOA leasing rules; solar leases | City license; HOA rules; seasonality |
| Rates from | 6.125% | 6.125% | 6.49% (STR DSCR) |
| Leverage on a large balance | Often lower; varies by program | Often lower; varies by program | Often lower; varies by program |
Phoenix's job growth has brought many relocating professionals, including engineers and managers tied to semiconductor plants in north Phoenix and Chandler, plus health care, finance and logistics employers. Many rent for a year or two before they buy, which supports demand for large, move-in-ready homes.
For a DSCR loan, a signed 12-month lease or a solid market rent estimate from the appraiser is what counts. Furnished, mid-term leases to traveling professionals can bring more rent, but programs differ in how they treat that income. Ask before you plan around it.
Desert homes come with items that underwriters and insurers ask about. Rooftop solar is common, and many systems are leased or financed rather than owned. A solar lease or a financing statement filed against the property can complicate title, and the lease payment may need to be assumed. Find out early whether panels are owned, leased or financed.
Pools are standard at the high end. They add liability and maintenance but generally do not hurt financing. Tile roofs last a long time, but the underlayment beneath them often needs work after a couple of decades. Air conditioning is essential, and older units cost more to run and replace.
None of these block a loan by themselves. They are items to resolve during your inspection period, before you are deep into closing.
This example is illustrative and not a quote. An investor buys a renovated Arcadia home for $1,450,000 that leases for $8,500 a month on a 12-month lease. Taxes are budgeted at $500 a month and insurance at $300. There are no HOA dues.
At 75% LTV the loan is $1,087,500. At a sample rate of 7.25% on a 30-year fixed, principal and interest is about $7,419. The total payment is about $8,219, and DSCR is $8,500 divided by $8,219, or about 1.03x.
At 70% LTV the loan is $1,015,000 and principal and interest is about $6,924. The total payment is about $7,724 and DSCR rises to about 1.10x. The investor brings $72,500 more to closing. On a balance this size, many programs cap leverage at or near the lower figure anyway.
| Item | 75% LTV | 70% LTV |
|---|---|---|
| Loan amount | $1,087,500 | $1,015,000 |
| Down payment | $362,500 | $435,000 |
| Principal and interest at 7.25% | $7,419 | $6,924 |
| Taxes and insurance | $800 | $800 |
| Total monthly payment | $8,219 | $7,724 |
| DSCR at $8,500 rent | About 1.03x | About 1.10x |
Arizona law limits cities from banning short-term rentals outright, but cities can require permits or licenses, and Phoenix now requires STR operators to obtain a license. HOAs can still restrict rentals through their governing documents, and many do. STRs also owe state and local lodging-related taxes.
Arizona also requires owners of residential rental property to register with the county assessor, and an LLC owner may need to register with additional contact details. Make sure the property is registered once you close.
Our STR DSCR program qualifies on projected revenue, with rates from 6.49% for qualified borrowers. Phoenix STR revenue is seasonal, with strong winter and spring months and slower summers, so the annual projection matters more than peak-month numbers.
Arizona property taxes are moderate compared with many states, and taxable value is limited in how fast it can rise each year. Rentals are classified separately from primary residences and do not receive the homeowner rebate on school taxes, so an investor's bill can be higher than an owner-occupant's. The Maricopa County Assessor's records show the classification and current figures.
Insurance is generally less volatile than on the coasts, but monsoon storms bring wind, dust and hail, and some homes near washes sit in mapped flood zones. Get a quote and a flood determination during your inspection period.
Much of the Valley's rental financing falls between $500K and $1M. Typical properties include single-family homes in Tempe, Mesa, Chandler, Gilbert, Glendale and Peoria, central Phoenix homes in neighborhoods like Coronado, Willo and Encanto, and newer homes in north Phoenix and Queen Creek.
On these balances, leverage is often nearer the program maximums: up to 80% LTV on a purchase and up to 75% on a cash-out refinance. Reserves are often lighter than on a $1M+ file, but both vary by program, and the rent still has to clear the 1.0x standard minimum.
Solar leases and HOA leasing rules come up at every price. A $600,000 Gilbert home with leased panels needs the same review as a $1.5M one.
Above $1M, the loan still qualifies on rent, with no W-2s or tax returns, a 620 minimum credit score and 30-year fixed options. Maximum LTV is often lower, reserve requirements are often higher and some programs require a second appraisal or a more detailed review.
Custom homes in Paradise Valley and on large Arcadia lots can have few comparable sales or leases, and guest houses or casitas raise questions about how rent is counted. Pricing on large balances is set case by case.
If you own five or more Valley rentals, a blanket portfolio loan can finance them on one closing with portfolio pricing, qualifying on the portfolio's combined cash flow.
A complete file gets a faster, clearer answer. Have these items ready when you reach out.
LendingStreet is an investment property financing company. We finance business-purpose DSCR loans on non-owner-occupied rentals across Phoenix and the rest of Maricopa County, plus nearby Pinal County.
Send the address, price, rent type and target leverage. The financing team will flag solar, HOA or licensing issues early and come back with 2-3 options.
They can slow it down. A solar lease or financing filing may need to be reviewed, assumed or subordinated before closing. Ask the seller for the solar documents early.
Yes, if the property is licensed with the city and the HOA allows STRs. STR DSCR loans qualify on projected revenue, with rates from 6.49% for qualified borrowers.
Arizona requires residential rental owners to register with the county assessor. Ask the assessor's office or your title company about the current process.
Our DSCR programs have no stated maximum. Loans start at $150,000, and larger balances are reviewed and priced case by case. On larger loans, maximum LTV is often lower and reserves higher.
It depends on the program and how the appraiser treats the unit. A legal second unit can sometimes add rent; an unpermitted casita usually does not. Ask the financing team early.
Programs differ. Some use a 12-month market rent estimate regardless of how you plan to rent. Ask how your program treats furnished leases before you rely on that income.
Yes. Cash-out goes up to 75% LTV, often lower on large balances, and the rent must still clear the program minimum at the new payment.
No. LendingStreet finances non-owner-occupied investment property only, not second homes or personal-use properties.
Yes. DSCR loans start at $150,000 with no stated maximum, and $500K to $1M loans are common for single-family rentals across Phoenix, Tempe, Mesa, Chandler, Gilbert and the West Valley.
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