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in Delano, CA
Delano investors have two strong non-QM options: DSCR loans and hard money loans. Each serves a different strategy.
DSCR is built for buy-and-hold rentals. Hard money is built for speed and short-term projects. Knowing the difference saves you money.
DSCR loans qualify you based on the rental property's income — not your tax returns. If the rent covers the mortgage, you're in the game.
These are 30-year fixed loans. Rates are higher than conventional, but the terms are stable. Delano landlords holding rentals long-term benefit most here.
Hard money lenders care about the asset, not your credit history. They lend based on the property's current or after-repair value.
These loans close fast — sometimes in days. Rates are steep and terms are short, usually 6 to 24 months. They're a bridge, not a destination.
DSCR rates run lower than hard money. Hard money lenders charge more because the risk is higher and the loan is short-term.
DSCR has stricter property condition requirements. Hard money lenders will fund distressed properties that DSCR lenders won't touch.
Buying a Delano rental that's already occupied or rent-ready? Use DSCR. The income from the property carries the loan.
Buying a distressed property to fix and flip — or refinance later into a DSCR loan? Hard money gets you in the door fast.
Yes — this is a common strategy. Fix the property with hard money, stabilize the rent, then refinance into a long-term DSCR loan.
Most DSCR lenders want at least a 620. Some go lower, but expect higher rates the further you are from 700.
Most lenders require a ratio of 1.0 to 1.25. That means rent must at least equal — ideally exceed — your monthly loan payment.
Experienced hard money lenders can close in 5–10 business days. It depends on the lender and how clean your deal is.
DSCR handles 2–4 unit properties well if they cash flow. Hard money works if the units need rehab before they can be rented.
Often yes — typically a step-down prepayment penalty in the first 3–5 years. Read the terms before you commit.