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in Brentwood, CA
Brentwood's growing rental market and appreciation potential attract investors seeking flexible financing. Both DSCR and hard money loans offer paths to acquisition without traditional income documentation.
These non-QM options serve different investment timelines and strategies. Understanding their core differences helps you match the right loan to your Contra Costa County property goals.
DSCR loans qualify you based on rental income potential, not W-2s or tax returns. The property's monthly rent compared to its mortgage payment determines approval.
These loans typically span 30 years with rates competitive to conventional financing. They work best for investors building long-term rental portfolios in Brentwood's expanding neighborhoods.
Expect down payments around 20-25% and qualification based on a DSCR ratio above 1.0. Properties generating strong rental income get better terms.
Hard money loans prioritize the property's current value and potential over borrower financials. These short-term loans typically last 6-24 months with higher interest rates.
Investors use them for fix-and-flip projects, bridge financing, or quick acquisitions in competitive Brentwood markets. Approval happens in days, not weeks.
Rates often reach 8-12% with points charged upfront. Down payments start around 10-20%, but speed and flexibility compensate for higher costs.
Timeline separates these options most dramatically. DSCR loans finance properties you'll hold for years, while hard money bridges short-term needs until refinancing or sale.
Cost structures differ significantly. DSCR loans offer lower rates over decades, making monthly payments manageable. Hard money charges premium rates but provides capital when speed matters more than cost.
Qualification criteria also diverge. DSCR lenders analyze rental comps and cash flow projections. Hard money focuses on after-repair value and your experience completing similar projects.
Choose DSCR loans when purchasing Brentwood rental properties you plan to hold. Strong rental comps and stable cash flow make qualification straightforward for buy-and-hold investors.
Hard money suits time-sensitive opportunities requiring quick closes or properties needing significant renovation. If you're flipping homes or bridging to permanent financing, speed justifies higher costs.
Many investors use both strategically. Hard money acquires and renovates, then DSCR refinancing locks in lower rates for long-term holding. Your timeline and exit strategy determine the best fit.
Yes, this is common practice. Investors use hard money to acquire and improve properties, then refinance to DSCR loans once renovations are complete and rental income is established.
DSCR loans offer significantly lower rates but require longer commitments. Hard money costs more but provides speed and flexibility for short-term projects. Rates vary by borrower profile and market conditions.
DSCR loans specifically require rental income for qualification. Hard money loans focus on property value and your equity, not rental performance or personal income.
Hard money loans typically close in 5-10 days. DSCR loans take 3-4 weeks. Choose based on whether you need speed or better long-term terms for your Brentwood investment.
DSCR loans accept newer investors if the property cash flows well. Hard money lenders may require previous project experience or charge higher rates for first-time flippers.