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in Lemoore, CA
Lemoore investors face a choice between two non-QM paths that skip traditional income verification. DSCR loans focus on rental cash flow for long-term holds, while hard money prioritizes asset value for quick flips.
Most investors use these loans for different stages of the same deal. Hard money gets you in fast, DSCR refinances you into stable terms once the property generates rent.
DSCR loans qualify on rental income alone—if the property generates enough cash to cover the mortgage, you're approved. We calculate the debt service coverage ratio by dividing monthly rent by the mortgage payment.
Typical DSCR terms run 30 years at rates 1-2% above conventional. You need a DSCR of 1.0 or higher, meaning rent equals or exceeds the payment. No tax returns, no pay stubs, no employment verification.
Hard money lenders approve based on the property's current or after-repair value, not your finances. These loans fund in days, not weeks, giving you leverage to close fast on deals other buyers can't touch.
Terms max out at 12-24 months with rates between 8-12%. You'll pay points upfront—typically 2-4% of the loan amount. These are bridge loans, not permanent financing.
DSCR loans cost less but require stable rental income and longer processing. Hard money costs more but works when the property isn't tenant-ready or you're buying at auction.
DSCR rates start around 7.5% with 30-year amortization. Hard money runs 9-12% interest-only for 12 months. DSCR needs appraisals and rent analysis. Hard money needs a rehab budget and exit strategy.
Use hard money when you're buying a fixer in Lemoore that needs work before it can rent. Once renovations finish and you place tenants, refinance into a DSCR loan to lock lower rates.
Go straight to DSCR if you're buying a turnkey rental or a property with tenants already in place. The two-week longer timeline doesn't matter when you're not racing other cash buyers.
Yes, this is the standard play for value-add properties. Renovate with hard money, lease it up, then refi to DSCR once you have 6-12 months of rental history.
DSCR costs less over any timeline beyond six months. Hard money's higher rates and points only make sense for short holds under 12 months.
DSCR typically needs 20-25% down. Hard money can go as low as 10% down but charges higher rates at those LTVs.
Hard money approves down to 600 credit scores since it's asset-based. DSCR usually requires 660+ and looks at both credit and property income.
Hard money closes in 5-10 days. DSCR takes 3-4 weeks due to appraisal and rent analysis requirements.