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Corcoran investors typically choose between DSCR and hard money loans based on timeline and property condition. DSCR works for rental income plays while hard money funds quick acquisitions and rehabs.
Both skip tax returns and W-2 verification. The difference is whether you need fast cash for a distressed property or long-term financing for a cash-flowing rental.
DSCR loans qualify you based on rental income divided by monthly debt payment. Lenders want a ratio above 1.0, meaning rent covers the mortgage with room to spare.
You get 30-year fixed terms with rates typically 1-2% above conventional. No tax returns, no pay stubs—just an appraisal showing the property generates enough rent.
Minimum credit score is usually 640 with 20-25% down. Close in 3-4 weeks once you have an executed lease or rental market analysis.
Hard money lenders fund based on property value, not your financials. They lend 65-75% of after-repair value for flips or 70-80% of as-is value for quick purchases.
Expect rates between 9-14% with points upfront. Terms run 6-24 months because these are bridge loans, not permanent financing.
Approval happens in days. Close in 1-2 weeks if you have a solid deal and clear exit strategy.
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 Corcoran.
Corcoran investors typically choose between DSCR and hard money loans based on timeline and property condition. DSCR works for rental income plays while hard money funds quick acquisitions and rehabs.
Both skip tax returns and W-2 verification. The difference is whether you need fast cash for a distressed property or long-term financing for a cash-flowing rental.
DSCR loans qualify you based on rental income divided by monthly debt payment. Lenders want a ratio above 1.0, meaning rent covers the mortgage with room to spare.
Timeline separates these products. Hard money closes in days for time-sensitive deals while DSCR takes 3-4 weeks but costs far less over time.
Cost structure differs dramatically. DSCR rates start around 7-8% with standard closing costs. Hard money charges 9-14% plus 2-4 points upfront.
Property condition matters. DSCR requires rent-ready properties with stable income. Hard money funds distressed properties that need work before tenants move in.
Use hard money when speed matters or the property needs major work. You're buying at auction, beating other offers, or funding a flip before refinancing out.
Choose DSCR when you're buying a rental that's already generating income. You want long-term financing with predictable payments and no refinance pressure.
Many investors use both in sequence. Hard money funds the purchase and rehab, then DSCR refinances into permanent financing once tenants are in place.
No. DSCR requires the property to be rent-ready with current or projected income. Use hard money for repairs, then refinance to DSCR.
DSCR costs less if you hold beyond 6 months. Hard money's high rates and points make it expensive for holds longer than your flip timeline.
Yes. DSCR commonly funds 2-4 units based on total rental income. Hard money lenders also fund small multifamily for rehab projects.
Yes. Neither requires tax returns or W-2s. DSCR qualifies on property income while hard money focuses on asset value and equity.
DSCR typically requires 640 minimum. Hard money lenders care more about deal quality and may approve scores as low as 580.
in Corcoran, CA