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in Antioch, CA
Antioch investors face an important choice when financing rental properties or fix-and-flip projects. DSCR loans and hard money loans both serve real estate investors, but they work in fundamentally different ways.
DSCR loans qualify you based on rental income your property generates. Hard money loans focus on the property's value and your equity position. Understanding these differences helps you choose the right financing for your Antioch investment strategy.
DSCR loans let Antioch investors qualify without W-2 income verification. The lender evaluates whether your rental income covers the mortgage payment. A DSCR of 1.0 means rent equals the payment, while 1.25 provides a comfortable cushion.
These loans typically offer 30-year terms with competitive rates for investment properties. You can finance single-family homes, duplexes, or small multifamily properties in Antioch. DSCR loans work well when you plan to hold a property long-term as a rental.
Expect to put 20-25% down on most DSCR loans. Rates vary by borrower profile and market conditions, but they generally fall between conventional and hard money pricing. The approval process takes 30-45 days on average.
Hard money loans provide fast funding for Antioch investors who need quick closings or are renovating properties. These asset-based loans rely on the property's current or after-repair value rather than rental income. Lenders can close in 7-14 days when needed.
Terms typically run 6-24 months, making them ideal for fix-and-flip projects or bridge financing. Rates are higher than DSCR loans because you're paying for speed and flexibility. Hard money lenders focus on exit strategy rather than long-term cash flow.
Down payments range from 10-30% depending on property condition and your experience. Points and fees are higher than traditional financing, but the quick access to capital enables deals that might otherwise slip away. Most hard money loans are interest-only during the term.
Timeline separates these options most clearly. DSCR loans take 30-45 days but offer lower rates and longer terms. Hard money closes in under two weeks but costs significantly more. Your Antioch project timeline determines which makes financial sense.
DSCR loans require the property to be rent-ready or already producing income. Hard money lenders fund distressed properties that need substantial work. If you're buying a turnkey rental in Antioch, DSCR fits. If you're renovating a fixer-upper, hard money enables the purchase.
Cost structure differs dramatically. DSCR loans have standard closing costs and lower interest rates. Hard money includes origination points of 2-4%, higher rates, and sometimes prepayment penalties. Calculate your total borrowing cost before choosing.
Choose DSCR loans when you're buying rental properties you'll hold for years in Antioch. They work best for stabilized properties generating rental income. The lower rates and long terms support positive cash flow and wealth building through appreciation.
Pick hard money when you need fast funding for fix-and-flip projects or bridge situations. Use it when properties need substantial renovation before they can be rented or refinanced. The higher costs make sense when speed unlocks deals or time is critical.
Many Antioch investors use both strategically. Hard money buys and renovates the property. DSCR loans refinance it once rent-ready, pulling out equity and lowering the monthly payment. This combination lets you recycle capital efficiently across multiple projects.
DSCR loans require properties to generate rental income, making them unsuitable for flips. They work for rental properties you plan to hold. Hard money better serves fix-and-flip strategies with short timelines.
Hard money typically costs 9-14% interest plus 2-4 points at closing. DSCR loans generally range from 7-10% with standard closing costs. The speed and flexibility justify hard money's higher expense for short-term projects.
DSCR loans typically require 640+ credit scores. Hard money lenders are more flexible, sometimes working with scores in the 600s or focusing primarily on the deal rather than credit history.
Yes, this is a common strategy. Complete your renovation with hard money, establish rental income, then refinance to a DSCR loan. This approach captures lower rates while recycling your capital for the next deal.
DSCR loans work well for 2-4 unit properties. Hard money can fund small multifamily deals but focuses mainly on single-family properties. Larger multifamily properties typically require commercial financing instead.