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in Paradise, CA
Paradise is a rebuild story. Investors are buying distressed lots, fixing damaged homes, and adding rental inventory to a market still recovering from the Camp Fire.
Two loan types dominate investor deals here: DSCR and hard money. They serve different stages of the same investment cycle.
DSCR loans qualify you based on the rental property's income, not your W-2 or tax returns. Lenders look at one number: does the rent cover the mortgage payment?
A DSCR above 1.0 means the property pays for itself. Most lenders want 1.1 or higher. These are 30-year loans — real long-term financing for stabilized rentals.
Hard money lenders care about one thing: the property's value. Your credit and income matter far less than the deal itself.
These are short-term loans — typically 12 to 24 months. Rates run higher, but you can close in days. That speed wins deals in a competitive market.
Local decision guide
Use this comparison to weigh DSCR Loans and Hard Money Loans through local payment fit, eligibility, documentation, and timing before choosing a path in Paradise.
Paradise is a rebuild story. Investors are buying distressed lots, fixing damaged homes, and adding rental inventory to a market still recovering from the Camp Fire.
Two loan types dominate investor deals here: DSCR and hard money. They serve different stages of the same investment cycle.
DSCR loans qualify you based on the rental property's income, not your W-2 or tax returns. Lenders look at one number: does the rent cover the mortgage payment?
DSCR loans have lower rates and longer terms. Hard money loans cost more but move faster and fund properties that need serious work.
A vacant fire-damaged house won't qualify for DSCR. It has no rent income. Hard money funds it. Once renovated and leased, you refinance into DSCR.
Buying a rebuilt home already leased to a tenant? Use DSCR. You get better rates and a loan you can hold for decades.
Buying a lot with a gutted structure or a home needing major rehab? Hard money gets you in fast. Plan to refinance out once it's stabilized.
No. DSCR loans require the property to generate rental income. A vacant or uninhabitable home won't qualify.
Some hard money lenders close in 5 to 10 business days. Speed depends on the lender and how clean your deal is.
Most DSCR lenders want a 620 minimum. Better scores get better rates. Rates vary by borrower profile and market conditions.
Many are. Interest-only payments keep monthly costs lower during the rehab period before you sell or refinance.
Yes — and that's a common strategy in Paradise. Rehab with hard money, lease it up, then refinance into long-term DSCR financing.
DSCR loans consistently price lower than hard money. Rates vary by borrower profile and market conditions.