2025 · California
In 2025, 53,082 investment-property loans worth $36.1B were originated on single-family 1-4 unit homes in California. Here's how those terms compared to the rest of the country.
Investor rate premium
75 bps
U.S. median: 76 bps
Denial rate
18.4%
U.S. median: 17.5%
DSCR / business-purpose
72%
U.S. median: 72%
Median LTV
68%
U.S. median: 74%
Since 2024 in California
Rate premium
88 bps → 75 bps
-13 bpsInvestor loans
42,942 → 53,082
+23.6%Denial rate
18.4% → 18.4%
-0.1 ptsDSCR / business-purpose
71% → 72%
+1.4 ptsInvestors in California borrowed at a median rate of 7.125%, versus 6.375% for owner-occupants — a 75 bps premium that ranks 28th of 51 states.
Their applications were denied 18.4% of the time. The leading reasons for denial were collateral, debt-to-income ratio, other.
72% of investor loans were business- or commercial-purpose — the category that includes DSCR and LLC-held loans — and 28% were cash-out refinances. The typical loan-to-value was 68%, implying about 32% down.
In 2025, the median investment-property loan in California carried a rate of 7.125% versus 6.375% for an owner-occupant — a premium of 75 bps. That ranks 28th of 51 states (1 = highest premium).
18.4% of investment-property applications were denied in California in 2025, the 17th-highest denial rate among the 51 states. The most common denial reasons were collateral, debt-to-income ratio, other.
72% of investor loans in California were flagged as primarily business or commercial purpose — the bucket that includes DSCR and LLC-held loans (18th of 51). The median loan-to-value was 68%.
Source: CFPB / FFIEC HMDA combined Modified LAR (loan-level public dataset, early release), 2025. Single-family 1-4 unit, site-built loans; financed purchases only.