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in Angels Camp, CA
Angels Camp investment properties need different financing than W-2 buyers use. DSCR loans work when rental income covers the mortgage. Hard money works when you need cash fast or the property needs serious work.
Both skip traditional income verification. But DSCR gives you 30-year terms while hard money gives you 6-24 months. Your timeline and property condition determine which loan makes sense.
DSCR loans qualify you on one number: monthly rent divided by monthly mortgage payment. Lenders want 1.0 or higher in Angels Camp. If rent is $2,000 and the payment is $1,800, your ratio is 1.11 and you're approved.
You get 30-year fixed rates and can close in 3-4 weeks. Expect 20-25% down and rates 1-2% above conventional. The property must be rentable at closing — no major rehabs allowed.
Hard money lenders fund based on after-repair value, not current condition. They'll lend on that fixer-upper on Main Street that needs $80,000 in work. You can close in 5-10 days if the property appraises.
Expect 10-12% interest rates and 2-4 points upfront. Most hard money loans run 12 months with extensions available. You need an exit strategy — either refinance to DSCR or sell the property.
DSCR costs less but takes longer and requires rentable condition. Hard money costs more but funds distressed properties in days. DSCR gives you decades to pay. Hard money gives you months.
DSCR needs stable rental income documented with leases or rent comps. Hard money only needs equity — usually 30-40% down based on purchase price or after-repair value. In Calaveras County's slower market, hard money exit timing matters more than in metro areas.
Use DSCR for turnkey rentals or light cosmetic work. That updated bungalow near Angels Camp Museum that's ready to rent? DSCR saves you thousands in interest over a hard money bridge loan.
Use hard money when you need speed or the property won't qualify for DSCR. Foreclosures, estate sales, properties needing foundation work — these need hard money first. Then refinance to DSCR after repairs when rent covers the mortgage.
Yes, if it's habitable and can generate rent at closing. Cosmetic updates like paint and flooring are fine. Electrical, plumbing, or structural work requires hard money first.
On a $300,000 loan, hard money runs roughly $3,500/month versus $1,800 for DSCR. Plus 2-4 points upfront. Use it short-term only.
DSCR typically requires 620-640 minimum. Hard money lenders care less about credit — some approve at 580 if you have enough equity.
Yes, that's the standard investor strategy. Use hard money to buy and renovate, then refinance to DSCR once rent covers the new payment.
DSCR scales better for portfolio building. Hard money works property-by-property but gets expensive across multiple deals simultaneously.