Rain City Capital Review 2026: 2,118 Loans, 41% Denied, Form D

Who Rain City Capital is

Rain City Capital, LLC is a Washington limited liability company with its headquarters at 12131 113th Ave NE, Suite 201, Kirkland, Washington. The global LEI registry gives its entity creation date as June 16, 2009, which fits the site’s “since 2009” and “17+ years” wording. The same registry shows the LEI registration as lapsed, with a renewal due April 10, 2020; the lender still filed HMDA data in 2026 under that identifier, so we treat it as a housekeeping point and not a finding.

The lender calls itself a direct private lender and sells three programs: Fix & Flip, DSCR Rentals and Ground-Up Construction, plus a Bridge product. Its home page claims “24+ states,” “96% Successful exits” and “80%+ Repeat borrowers,” and its About page says it has funded “$2B” in loans. The footer prints NMLS ID #2577725, an Arizona mortgage banker licence and a California Finance Lender licence. Those are the lender’s own statements, read on October 21, 2026. NMLS Consumer Access holds the state-by-state record and cannot be read by a script, so check it yourself before you rely on the numbers.

Two other entities share the address. Rain City Short-Term Income Fund LLC (CIK 1993805) and Rain City Depositor LLC (CIK 2039346) both file with the SEC from the same suite, and the Form D and ABS-15G documents describe them; we come back to both below. We name no individuals: the Form D lists five related persons, all as executive officers, and the documents are linked in the sources.

The borrower side: what the 2025 HMDA file shows

The Home Mortgage Disclosure Act (HMDA) obliges lenders to report their applications and loans. Rain City’s 2025 file has 3,585 records, every one a business-purpose, investment-property, first-lien, closed-end loan application. Only two outcomes appear: 2,118 originated (action taken 1) and 1,467 denied (action taken 3).

HMDA has no “hard money” field, so on our hard money lender ranking we used a short-term group: first lien, one to four units, investment property, business purpose, no debt-to-income ratio and a term of 36 months or less. On that definition Rain City made 1,454 loans for $430.1 million, 2.1% of the 68,319 national total and the tenth largest lender (ninth on that page, where one lender whose loans look like 30-year loans is set aside). The 2,118 above is wider because it also counts the 462 loans with a 30-year term and 187 with no term at all.

Two kinds of loan in one file

The split matches the lender’s site, which lists Fix & Flip, Bridge and construction loans with terms of 12 to 18 months and DSCR rental loans with a 360-month term. The 12-month loans make up 68.8% of the loans and 67.4% of the dollars (our arithmetic). A borrower reading “10.5%” should know that it describes the short-term book and that the 30-year loans priced about three points lower.

On a $225,000 loan, the median size, interest at the median 10.5% on an interest-only loan is $1,968.75 a month, $23,625 for a 12-month term; at the 12% that 479 loans carry it is $2,250 a month, $27,000 for the year (our arithmetic). HMDA records the note rate only. Points, origination fees, draw and inspection fees and any extension cost sit outside the file, which is why the rate is a floor for the cost and not the cost.

A reporting pattern to treat with care

All 2,118 originated loans carry the interest-only flag and the balloon flag, and all list loan purpose code 4 (other purpose), automated-underwriting code 6 (not applicable) and purchaser code 0. That includes the 462 30-year loans, which the lender’s product table describes as “30-year fixed or 10-year interest-only option.” A 30-year fixed loan is not a balloon loan, so at least some of the flags look like a uniform setting in the lender’s reporting system, not a loan-by-loan description. We therefore do not report “100% interest-only” as a feature of the book. The same caution applies to the next section.

Denials: 40.9%, every one for the same reason

Of 3,585 applications that reached a decision, 1,467 were denied: 40.9%. Every one of the 1,467 lists denial reason 5, which HMDA defines as insufficient cash (down payment, closing costs), and none lists a second reason. A lender that reviews cash, credit, collateral and documents file by file would normally show a mix. A single code on 1,467 of 1,467 denials is consistent with a default entry; we cannot tell from the file which it is, and we ask the lender nothing here. Treat the 40.9% as what was filed, not as a measured rejection rate.

The range, from 0.0% to 46.2% among lenders that do similar work, shows that the share depends on what a lender sends to the registry. Easy Street and RF Renovo report almost no denials; Kiavi’s 11.4% and Lima One’s 27.3% sit in between. For all business-purpose lenders in our extract the share was 20.2% (our arithmetic). Rain City also reports no withdrawn, incomplete or approved-but-not-accepted files at all (the file holds only two action codes), which narrows its denominator. By term, the denied share was 29.0% for 12-month loans, 41.2% for 30-year loans and 74.3% for files with no term; by state it ran from 24.7% in Tennessee and 27.9% in Oregon to 47.7% in Texas and 55.2% in Georgia (our arithmetic). A borrower should read this as “many files do not become loans,” not as a guide to the odds on a given deal. Our fix-and-flip lender page compares these lenders on terms and volumes.

Where the loans are, and where the website says it lends

Washington is the home market, with 418 loans and 19.7% of the count, and Washington, Oregon, Idaho, Montana and Alaska together make 27.7% (our arithmetic). The rest of the book is spread over the South and Midwest. Two details stand out. First, the lender’s home page lists the states where it “currently lends,” 24 states plus the District of Columbia, and says DSCR loans are available “in all states except” a list that includes New Jersey and New York; yet 94 of the 2025 loans are in ten states that are not on that list today, including 62 in New Jersey (59 of them with a 30-year term and a 7.63% median rate) and 13 in New York. Second, California is on the list and has a California finance lender licence printed in the footer, but the HMDA file has no 2025 California loan. The file does not say why: the site list may have changed since 2025, loans may have been closed through a broker or another entity, or the licence may be used for other business.

What the lender says it offers

These terms come from the lender’s public loan-products page, read October 21, 2026. They are marketing material, not a quote.

Three notes for a borrower. The Fix & Flip leverage is stated two ways on the same page, 100% in the table and 95% in the dated update, so ask which applies to your deal and in writing. “Non-Dutch interest” means, in the site’s words, “only pay what you draw.” And the FAQ says that “both principal paydowns and early full payoffs carry no penalties,” a statement HMDA cannot test because the prepayment field is blank for every loan. The site also says the “pass-through recording fee appears in deferred charges and is collected at payoff” and that construction draws are verified by third-party inspectors, and “each carries a nominal inspection and wire-transfer fee.” Fees like these are where a 10.5% rate becomes a higher all-in cost, so ask for the full fee sheet before you pay for an appraisal. For how this rate compares with others, see our hard money loan rates page, and for a Texas borrower our Texas hard money page.

The investor side: what Form D shows

Rain City Capital, LLC also raises money from investors. The SEC’s EDGAR system holds 13 Form D filings under its CIK 1512803, from February 11, 2011 to November 26, 2025. The one that matters most is the amendment for the offering whose first sale was on May 11, 2016. Form D asks the issuer to enter the offering amount and “the dollar amount of securities sold in the offering as of the filing date,” so each filing is a snapshot of the amount sold, not of any return.

Four readings follow, all from the filings.

• The amount sold has risen since 2022. From $56,566,000 on December 4, 2024 to $84,414,010 on November 26, 2025 is $27,848,010 more, up 49.2%, and six more investors (our arithmetic). The sold amount is 33.8% of the $250,000,000 offering. Per investor it averages $1,096,286 (our arithmetic), well above the $250,000 minimum, so a few large positions probably carry the total.
• It can fall. Between April 19, 2019 and June 12, 2020 the sold amount went from $28,286,000 to $17,868,000. The 2020 filing explains: “The company redeemed $13,217,000 worth of units since its last Form D filing, thus lowering the number of total investors in this offering.” So the number is net of redemptions the company chooses to describe, and it says nothing about what investors earned.
• It is not a retail offering. The filing claims the exemption coded 06b, which on the form is Rule 506(b). The SEC says a 506(b) offering allows “no general solicitation or advertising to market the securities” and no more than 35 non-accredited investors; the Form D box for non-accredited investors is checked but reports 0 who have invested. The minimum investment accepted is $250,000, and sales commissions and finders’ fees are reported as $0. Our Form D reading guide and the 506(b) versus 506(c) census explain these fields.
• The loans and the offering are not linked in the documents we read. Rain City originated $653.2 million of loans in 2025 against an offering that had sold $84.4 million in total since 2016. The Form D does not say what the proceeds are used for, and the lender’s website describes no fund or offering. The two figures measure different things and should not be added or compared.

A second fund, and a securitization

Rain City Short-Term Income Fund LLC (CIK 1993805) filed a Form D on September 18, 2023 for a $100,000,000 offering under Rule 506(c), the exemption for accredited investors only with verification, and reported $1,115,000 sold to 10 investors on April 29, 2024 and $1,300,000 sold to 12 investors on September 11, 2024, with a $250,000 minimum. That is its latest filing. The Form D instructions require an amendment “annually, on or before the first anniversary of the most recent previously filed notice, if the offering is continuing at that time,” which would have meant a filing by September 11, 2025. The feed shows none, and the filings do not say whether the offering ended. We make no claim beyond the dates.

Rain City Depositor LLC (CIK 2039346) filed Forms ABS-15G on January 30, 2025 and February 11, 2026 as the depositor of the Rain City Mortgage Trust 2024-RTL1 notes, naming Rain City Capital, LLC as the sponsor. Both reports tick the box for “no activity” in the annual period, meaning no repurchase requests to report for 2024 or 2025. The trust dates from 2024 and shows that some of the lender’s loans are sold into a securitization, even though HMDA shows none sold within 2025.

When the next filing is due

The latest Form D for the main offering was filed on November 26, 2025. If the offering is still continuing, the annual rule puts the next amendment on or before November 26, 2026. The history is not strictly annual: the amendment of December 6, 2023 came 583 days after the one of May 2, 2022 (our arithmetic). We read the SEC feed on October 21, 2026, and the last filing under CIK 1512803 was the one dated November 26, 2025.

Complaints and records

The CFPB Consumer Complaint Database returns no complaint for any search on “Rain City” (company field and all fields) on October 21, 2026. That is not a clean bill of health: the database covers consumer financial products, and business-purpose loans may fall outside it. A web search for court filings, regulator actions and SEC enforcement under the company name turned up none, but that search is not a docket search; check the Washington Department of Financial Institutions and the court records of your state before you sign.

What the data cannot tell you

• Today’s rate or fees. HMDA is 2025, and points, origination charges and prepayment terms are blank on every record.
• Leverage. There is no loan-to-value field filled in, so the 95%, 100% and 80% figures on the site cannot be tested.
• Defaults or performance. HMDA and Form D show originations, denials and amounts sold, not payoffs, extensions or losses. The lender’s “96% Successful exits” has no definition or period on the page.
• Who the investors are or where their money goes. Form D lists a count and an amount, not the use of funds.

What a reader can do with this

• If you are a borrower, ask which book your deal belongs to. A 12-month fix-and-flip loan priced near 10.5% to 12% and a 30-year rental loan priced near 7.6% are different products in the same HMDA file. Ask for the rate, points, draw and inspection fees, extension terms and the leverage that applies in writing.
• Do not read the denial share as your odds. Ask the loan officer for a pre-approval in writing and compare it with at least two other lenders on the same day; our fix-and-flip lender page lists the largest ones.
• Check the state first. If you are in a state that is not on the lender’s list, such as New Jersey or New York, confirm in writing that the lender will lend there and under which licence.
• If you are considering the investment side, the minimum is $250,000 under Rule 506(b), the units are sold privately, and the Form D is a count of money sold, not a performance record. Ask for the offering documents and ask how redemptions are handled; the 2020 filing shows they have occurred.
• Verify the licence. Look up NMLS ID 2577725 on NMLS Consumer Access, and the Washington DFI record, before you send a deposit.

FAQ

Sources, read October 21, 2026: FFIEC HMDA Data Browser loan-level file for LEI 5493004T38NMC864VL66 (2025; no 2024 records) and the nationwide 2025 extract of actions taken 1 and 3, tabulated by us; GLEIF LEI record; SEC EDGAR submissions and Form D filings of Rain City Capital, LLC (CIK 1512803, accessions 0001512803-16-000001 to 0001512803-25-000002) and Rain City Short-Term Income Fund LLC (CIK 1993805); Forms ABS-15G of Rain City Depositor LLC (accessions 0001104659-25-007526 and 0001104659-26-013289); the SEC’s Form D instructions and Rule 506(b) page; 17 CFR 230.506; the CFPB Consumer Complaint Database search API; raincitycapital.com home, about, loan products and FAQ pages. This is analysis of public records, not investment, legal, lending or tax advice. We have no commercial relationship with Rain City Capital; Kiavi is a paid link.