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in Sutter Creek, CA
Sutter Creek's historic downtown draws investors looking at both long-term rentals and quick rehab projects. DSCR loans fund cash-flowing properties while hard money covers fast acquisitions and renovations.
These loans serve different strategies. DSCR works when you're buying a turnkey rental. Hard money fits when you need speed or the property needs work before it can cash flow.
DSCR loans approve based on rent divided by mortgage payment. If a Sutter Creek rental brings in $2,500 monthly and the payment is $2,000, your ratio is 1.25. Most lenders want 1.0 or higher.
These close in 3-4 weeks with 20-25% down. Rates run 1-2% above conventional but you avoid tax returns and pay stubs. The property finances itself from day one.
Hard money lenders fund based on property value, not your financials. They'll loan 65-75% of after-repair value on a Sutter Creek fixer. Close in 7-14 days with minimal paperwork.
Rates hit 9-12% with 2-4 points upfront. Terms run 6-24 months because these aren't hold loans. You refinance to DSCR or conventional once renovations finish and the property stabilizes.
DSCR gives you 30 years at 7-8% for rent-ready properties. Hard money gives you 12 months at 10-12% for properties that need work. DSCR wants proof of rent. Hard money wants exit strategy.
DSCR requires appraisal and rent analysis taking 3-4 weeks. Hard money orders a quick BPO and funds in days. You pay 3-4x more per month on hard money but hold it for months, not years.
Use DSCR when buying a turnkey Sutter Creek rental that's already leased or rent-ready. You want low payments and plan to hold long-term. The property needs minimal work and can generate positive cash flow immediately.
Use hard money for distressed properties, estate sales, or foreclosures needing renovation. You need to close before another buyer or the property can't qualify for traditional financing yet. Budget for the refinance to DSCR in 6-12 months once rehab completes.
Yes, that's the standard play for fixers. Renovate with hard money, stabilize with tenants, then refinance to DSCR for long-term hold.
Hard money is easier—it's all asset-based. DSCR still checks credit and needs the property to cash flow at closing.
Yes. Neither works for primary residence. Both are designed specifically for rental property investors.
DSCR typically requires 660-680 minimum. Hard money lenders care less about credit, sometimes approving scores in the 500s.
Maybe. If it's rentable as-is and appraises at value, DSCR works. Major systems failing or uninhabitable condition means hard money first.