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in Orange Cove, CA
Orange Cove investors face a clear choice between two rental property financing paths. DSCR loans work for long-term rentals, while hard money targets quick flips and heavy rehabs.
Both products skip traditional income verification. The difference comes down to your timeline and property condition.
DSCR loans qualify you based solely on rental income. If the property generates enough rent to cover the mortgage payment (typically 1.0x to 1.25x), you're approved.
Terms run 30 years fixed at rates 1-2% above conventional. Most lenders require 20-25% down and accept properties in rent-ready condition.
You keep the loan long-term. No pressure to refinance in 12 months or sell the property.
Hard money lenders fund based on the property's after-repair value. Your credit and income barely matter—they're betting on the asset.
Expect 10-14% rates with 2-4 points upfront. Terms run 6-24 months, giving you time to renovate and either sell or refinance into permanent financing.
Approval takes 3-7 days. Lenders fund properties other banks won't touch, including tear-downs and major rehab projects.
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 Orange Cove.
Orange Cove investors face a clear choice between two rental property financing paths. DSCR loans work for long-term rentals, while hard money targets quick flips and heavy rehabs.
Both products skip traditional income verification. The difference comes down to your timeline and property condition.
DSCR loans qualify you based solely on rental income. If the property generates enough rent to cover the mortgage payment (typically 1.0x to 1.25x), you're approved.
DSCR rates run 7-9%, hard money runs 10-14%. DSCR costs less per month but requires the property to generate income immediately.
Hard money approves in a week, DSCR takes 3-4 weeks. Hard money handles properties needing $80K in repairs, DSCR won't fund anything uninhabitable.
DSCR gives you 30 years to hold. Hard money forces a sale or refi within 12-18 months in most cases.
Use DSCR if you're buying a rental property in move-in condition. You want low monthly payments and plan to hold for years.
Use hard money if you're buying a distressed property in Orange Cove to renovate. You need fast cash and will sell or refinance within 12 months.
Some investors start with hard money to renovate, then refinance into DSCR once the property is rented. This maximizes speed upfront and minimizes long-term cost.
No. DSCR lenders require the property to be rent-ready at closing. You can't use DSCR funds for renovation work.
Most hard money lenders accept 600+ credit. Some fund deals with scores as low as 550 if the property has strong equity.
DSCR maxes at 80% loan-to-value. Hard money lends up to 75% of after-repair value, sometimes covering purchase and rehab costs combined.
Hard money closes in 5-10 days. DSCR takes 3-4 weeks due to appraisal requirements and income verification on the property.
Yes. Most investors use hard money to buy and renovate, then refinance into DSCR once the property is rented and stabilized.