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in Lemoore, CA
Both loans skip personal income verification. That's where the similarity ends.
Lemoore investors use these loans differently. Knowing which fits your deal saves time and money.
DSCR loans qualify you on rental income — not your personal earnings. The property pays for itself, at least on paper.
Lenders check the rent against the mortgage payment. A ratio at or above 1.0 typically gets you approved.
These are long-term loans. 30-year terms are common. That stability works well for buy-and-hold investors.
Hard money lenders care about the asset, not you. They lend based on the property's value — current or after repairs.
These loans close fast. Some deals fund in under two weeks. Speed is the product they're selling.
Short terms — usually 6 to 24 months — mean you must exit fast. Sell it or refinance before the clock runs out.
DSCR rates run higher than conventional but are built for the long haul. Hard money rates run even higher — and that's by design for short holds.
Hard money lenders often charge points upfront. DSCR lenders typically don't stack fees the same way.
One loan holds property. The other finances a transaction. Don't mix the two strategies up.
Buying a Lemoore rental and holding it? DSCR is the right structure. The rent from your tenant services the debt.
Buying distressed property to flip or force appreciation? Hard money gets you in fast and out clean.
Some investors use both. Hard money to acquire and renovate — then a DSCR refinance to hold long-term.
No. DSCR loans are structured for long-term holds. Use hard money for flips — the short term matches the exit.
Hard money can close in under two weeks. DSCR typically takes 3–4 weeks minimum.
Neither requires W-2s or tax returns. DSCR uses rental income; hard money focuses on property value.
Most lenders want 1.0 or above. That means rent covers the full mortgage payment.
Yes. That's a common exit strategy. Once the rehab is done, a DSCR refi locks in long-term financing.
DSCR rates are lower. Hard money is priced for speed and short holds, not rate. Rates vary by borrower profile and market conditions.