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Sanger's investor market runs on two distinct loan types. DSCR loans work for rental income plays. Hard money fits fix-and-flip projects.
Both ignore your W-2 income, but they serve completely different timelines. One finances long-term holds. The other gets you in and out fast.
DSCR loans qualify you based on the property's rental income, not your tax returns. You need a 1.0 ratio or higher — monthly rent must cover the mortgage payment.
These are 30-year fixed loans with rates typically 1-2% above conventional. You'll put down 20-25%. Good for buy-and-hold investors who want stable, long-term financing.
Most lenders want 680+ credit and six months reserves. No income docs required. The property has to appraise and show strong rent comps in Sanger's market.
Hard money is short-term bridge financing based on the property's value, not your financials. Terms run 6-24 months with interest-only payments.
Rates hit 9-14% with 2-5 points upfront. You'll get 65-75% of the after-repair value. Speed matters here — closings happen in days, not weeks.
Credit matters less than equity and exit strategy. Most deals close with 600+ scores. Lenders care about your renovation plan and how you'll refinance or sell out.
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 Sanger.
Sanger's investor market runs on two distinct loan types. DSCR loans work for rental income plays. Hard money fits fix-and-flip projects.
Both ignore your W-2 income, but they serve completely different timelines. One finances long-term holds. The other gets you in and out fast.
DSCR loans qualify you based on the property's rental income, not your tax returns. You need a 1.0 ratio or higher — monthly rent must cover the mortgage payment.
DSCR gives you traditional amortization over decades. Hard money gives you fast cash for short flips. Rate spreads show it — DSCR runs 7-9%, hard money hits double digits.
Approval timelines split hard. DSCR takes 3-4 weeks with appraisals and rent analysis. Hard money closes in a week because lenders only care about property value and your equity.
Your exit plan determines the winner. Planning to rent it out for years? DSCR wins on cost. Flipping in six months? Hard money's speed justifies the rate hit.
Choose DSCR when you're buying rental property to hold. The lower rate and long term make sense for cash flow plays in Sanger's growing rental market.
Pick hard money for acquisition and rehab projects. If you're buying a distressed property, renovating it, and selling or refinancing within a year, the speed and flexibility matter more than the rate.
Some investors use both in sequence. Hard money funds the purchase and renovation. Then they refinance into a DSCR loan to hold the property long-term as a rental.
No, DSCR loans require rental income and long-term holds. Lenders won't approve if you plan to sell within a year.
No. Hard money lenders focus on property value and your equity stake. Your W-2 or tax returns don't matter.
Hard money closes in 5-10 days. DSCR takes 3-4 weeks for appraisal and rent analysis.
Yes, that's common. Use hard money to buy and renovate, then refinance into DSCR for long-term rental financing.
DSCR typically requires 680+. Hard money works with 600+ because lenders prioritize property equity over credit.
in Sanger, CA