Loading
in Parlier, CA
Parlier's rental market attracts investors looking for cash flow opportunities in Fresno County. DSCR and hard money loans both skip traditional income verification, but they serve completely different investment strategies.
DSCR loans work for buy-and-hold investors who want long-term financing. Hard money fits fix-and-flip projects that need fast closings and short holding periods.
DSCR loans qualify you based on rental income, not your tax returns. If the property generates enough rent to cover the mortgage payment, you can get approved with a DSCR of 1.0 or higher.
Terms run 30 years at fixed or adjustable rates. You'll need 20-25% down, and rates typically run 1-2% higher than conventional loans. This works when you're holding the property long-term for rental income.
Hard money loans fund in days, not weeks. Lenders care about the property's after-repair value and your exit strategy, not your credit score or rental income potential.
Expect 8-12% rates on 6-24 month terms with interest-only payments. You'll put down 10-30% depending on experience and deal structure. These loans cost more because they're designed for quick execution and short holds.
Timeline separates these loans completely. DSCR closings take 21-30 days with full appraisals and underwriting. Hard money funds in a week because lenders focus on asset value over borrower financials.
Cost structure differs dramatically. DSCR loans charge conventional-style rates for 30 years. Hard money hits you with higher rates and points upfront, but you're only paying for 6-18 months while you renovate and sell.
Exit strategies matter most. DSCR requires the property to cash flow from day one since you're making 30-year payments. Hard money assumes you'll sell or refinance within months, so monthly cash flow doesn't factor into approval.
Choose DSCR when you're buying a rental property in Parlier that already generates income or will rent immediately. You want long-term financing, predictable payments, and to build equity over years.
Go hard money when you're flipping a distressed property that needs renovation before it can rent or sell. You need fast capital, plan to exit within a year, and the higher short-term cost beats missing the deal entirely.
Most Parlier investors use both at different times. Hard money gets you into the deal quickly, then you refinance to DSCR once the property is renovated and producing rental income.
DSCR lenders want rent-ready properties. If the place needs significant work, start with hard money, complete renovations, then refinance to DSCR once it's rented.
Hard money closes in 5-10 days with minimal documentation. DSCR takes 21-30 days with full appraisals and underwriting similar to conventional loans.
DSCR lenders approve new investors if the numbers work. Hard money lenders prefer experience and may require larger down payments from first-timers.
DSCR typically requires 620-660 minimum credit. Hard money cares less about credit and more about your equity and exit plan.
Yes, neither requires personal income verification. DSCR uses rental income calculations, hard money focuses entirely on property value.