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in Plymouth, CA
Plymouth investor deals need financing that works for rental properties and rural rehab projects. DSCR loans fund based on rent income, while hard money lends on property value alone.
Both skip W-2 income verification, but they serve different investment strategies. DSCR works for buy-and-hold rentals with tenant income, hard money for fix-and-flip timelines under 12 months.
DSCR loans approve based on one number: monthly rent divided by monthly mortgage payment. Lenders want that ratio at 1.0 or higher, meaning rent covers the full payment.
You'll get 30-year fixed terms with rates typically 1.5-3% above conventional mortgages. Credit scores start at 620, down payments at 20%, and closings take 21-30 days.
No tax returns, no pay stubs, no employment verification. The property income qualifies the loan, not your personal earnings or job history.
Hard money lenders fund on property value and exit strategy, not credit scores or rent rolls. They'll lend up to 75% of current value or 90% of purchase price, whichever is lower.
Terms run 6-24 months with rates between 9-14% plus 2-5 points at closing. Approval takes 3-7 days, funding in 7-14 days total.
These loans work for properties that won't qualify for traditional financing yet. Think distressed homes, major renovations, or quick auction purchases in rural Amador County.
Cost separates these loans immediately. DSCR rates run 7-9%, hard money 9-14%. DSCR charges standard closing costs, hard money adds 2-5 points upfront.
Timeline matters for your deal structure. DSCR takes a month to close, hard money funds in two weeks. DSCR gives you 30 years to hold, hard money forces a sale or refinance within 24 months.
Property condition drives loan choice. DSCR requires rent-ready properties with current or immediate tenant income. Hard money funds tear-downs, major rehabs, and properties that won't appraise in current condition.
Choose DSCR when you're buying a rental property that already generates income or will within 30 days. It costs less monthly and lets you hold long-term without refinancing pressure.
Pick hard money when speed matters more than cost, or the property needs work before it can rent. You'll pay more but fund faster and handle properties DSCR lenders won't touch.
Plymouth's mix of established rentals and fixer properties fits both strategies. Buy a tenant-occupied home on Main Street with DSCR, or grab a distressed ranch property with hard money then refinance to DSCR after rehab.
No. DSCR requires rental income at closing. Fix-and-flips need hard money until the property generates rent, then you can refinance to DSCR.
Hard money approves faster with lower credit requirements. DSCR needs 620+ credit and positive rent-to-payment ratios but costs significantly less long-term.
Yes, but hard money handles unusual properties better. DSCR lenders prefer standard single-family homes while hard money funds acreage, unique builds, and non-standard layouts.
DSCR starts at 620 credit minimum. Hard money lenders often approve below 600 or focus entirely on property value instead of borrower credit.
Yes, this is common strategy. Complete rehab, place tenants, then refinance to DSCR for lower rates and 30-year terms once property generates rental income.