Loading
in Susanville, CA
Susanville investors face a choice: qualify based on rental income or close fast with asset-based financing. DSCR loans use property cash flow, not your W-2. Hard money loans care about the asset value and your exit plan.
Both skip traditional income verification. DSCR works for rental holds. Hard money fits fix-and-flips or bridge scenarios. Your timeline and property strategy determine which fits.
DSCR loans qualify you based on one number: rental income divided by monthly debt. Above 1.0 means the property covers its own payment. Most lenders want 1.1 to 1.25. Your tax returns don't matter.
Terms run 30 years fixed or adjustable. Rates sit 2-3 points above conventional. Expect 20-25% down minimum. These work for investors building rental portfolios in Susanville who want stable, long-term financing.
Hard money lenders fund based on property value, not your finances. They lend 65-75% of purchase price or after-repair value. Rates run 9-14% with 1-3 points upfront. Terms last 6-24 months.
These loans close in days, not weeks. Underwriting focuses on exit strategy and equity. Credit scores matter less than deal structure. Investors use them for acquisitions, rehabs, or bridge financing until permanent loans fund.
Cost splits them apart. DSCR rates run 7-9%. Hard money hits 10-14% plus points. DSCR terms stretch 30 years. Hard money maxes at 24 months, usually 12.
Approval speed flips the equation. DSCR takes 3-4 weeks. Hard money closes in under two weeks. DSCR requires rental income proof and appraisals. Hard money needs asset value and a clear exit. Choose based on whether speed or cost matters more.
Use DSCR if you're buying a rental to hold long-term. You need lower rates and permanent financing. The property must generate enough rent to cover the mortgage with margin to spare.
Use hard money for time-sensitive deals or properties needing work. You're flipping, can't wait a month to close, or the property won't qualify for traditional financing yet. Plan your refinance or sale before the term ends.
Yes, most investors do this after renovations. Once the property rents and appraises higher, DSCR loans replace expensive hard money with long-term financing.
Hard money has lower qualification bars but higher costs. DSCR requires stronger rental income proof but offers better rates if the property cash flows.
Hard money funds rehabs directly. DSCR loans require the property to be rent-ready and already generating income at closing.
DSCR requires 20-25% down minimum. Hard money lends up to 75% of value, meaning 25-35% down depending on the deal.
Many investors do. Use hard money to buy and renovate. Refinance into DSCR once stabilized and rented for long-term hold.