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in Hanford, CA
Hanford investors have two strong non-QM tools: DSCR loans and hard money. Each serves a different strategy.
Picking the wrong one costs you time and money. Here's how to read the difference fast.
DSCR loans qualify you based on the rental property's income — not your W-2 or tax returns. Lenders check whether rent covers the mortgage payment.
Most lenders want a DSCR of 1.0 or higher. That means rent equals or exceeds the monthly debt payment. Some programs go below 1.0 with stronger down payments.
Hard money lenders focus on the asset — the property's value — not your financials. Approval is fast. Funding can close in days, not weeks.
These are short-term loans, usually 6 to 24 months. Rates run higher than conventional. They're built for acquisitions, fix-and-flips, and bridge situations.
DSCR loans are long-term financing. Hard money is a bridge. Same investor, different mission — one holds, one exits.
Rates vary by borrower profile and market conditions, but hard money consistently runs higher. You pay for speed and flexibility. DSCR trades that speed for lower long-term cost.
Buy a Hanford rental and plan to hold it? DSCR is your loan. The property cash flows, you qualify on that income, done.
Buying a distressed property to renovate and sell? Hard money. You need speed and short-term capital — DSCR isn't built for that exit.
No. DSCR loans are designed for stabilized rentals with ongoing income. For a flip, hard money is the right tool.
Hard money can close in days. DSCR typically takes 2–4 weeks. Speed costs more in rate and fees.
DSCR lenders usually want a minimum score — often 620 or higher. Hard money lenders focus on the asset and are more flexible.
Yes — and many Hanford investors do exactly that. Fix the property, stabilize rent, then refinance into a long-term DSCR loan.
DSCR loans carry lower rates than hard money. Rates vary by borrower profile and market conditions.
No, but many investors use LLCs. Both loan types are available to individuals and entities — ask your broker which structure fits best.