Question 1

Can I finance an investment property with less than 20% down in Los Angeles?

Accepted Answer

Some portfolio lenders go to 15% down for experienced investors with strong credit. First-time investors usually need 20-25% minimum.

Question 2

Do DSCR loans work for fix-and-flip properties?

Accepted Answer

No. DSCR loans require rental income which distressed properties don't have. Use hard money or bridge loans for renovation projects.

Question 3

How many investment properties can I finance in Los Angeles?

Accepted Answer

Conventional loans cap at 10 financed properties. Portfolio and DSCR lenders have no hard limit if you have sufficient reserves and experience.

Question 4

What credit score do I need for investor financing?

Accepted Answer

Most programs start at 620 credit. DSCR loans may accept 640-660 minimums depending on property cash flow and down payment.

Question 5

Are interest rates higher on LA investment properties?

Accepted Answer

Yes. Investor rates run 0.5-1.5% above owner-occupied conventional loans. DSCR and portfolio products add another 0.5-1% on top of that.

Question 6

Can I use projected rent for DSCR loan qualification?

Accepted Answer

Lenders use market rent appraisals for vacant properties. They won't inflate projections. Rent must cover 1.0-1.25x the mortgage payment.

Investor Loans in Los Angeles — Financing Multi-Unit and Rental Properties