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in Susanville, CA
Susanville investors have two real options for financing rental plays: DSCR loans and hard money. Both skip personal income verification. That's where the similarity ends.
DSCR is built for buy-and-hold. Hard money is built for speed and short-term moves. Picking the wrong one costs you money.
DSCR loans look at one number: does the rent cover the mortgage? Lenders typically want a ratio of 1.0 or higher — meaning rent equals or exceeds the payment.
These are 30-year loans. Rates are higher than conventional, but the terms are long-term stable. No tax returns. No employment history required.
Hard money lenders care about the asset, not the borrower. They lend against the property's value — current or projected after rehab.
Expect 12-24 month terms and rates well above DSCR. The tradeoff is speed. Hard money can close in days, not weeks.
DSCR rates and hard money rates are both above conventional. But hard money runs significantly higher. It's not meant to be held — it's a bridge.
DSCR requires the property to cash flow. Hard money doesn't care about rent — it cares about exit strategy. Rates vary by borrower profile and market conditions.
Buying a Susanville rental and holding it? Use DSCR. The lower rate and 30-year term protect your cash flow month over month.
Buying distressed or needing to move fast? Hard money gets you there. Just have your exit plan ready before you close.
Some lenders allow it using a market rent appraisal. You'll need to show the area supports that rent level.
Many hard money lenders close in 7-14 days. Appraisal and title are the main variables in rural markets.
Yes, and it's a common exit strategy. Once the property is stabilized and rented, a DSCR refi pays off the hard money.
DSCR lenders typically want 620 or higher. Hard money lenders vary — some go lower since the asset carries more weight.
Hard money can sometimes go higher LTV on the asset side, but terms vary widely. DSCR typically requires 20-25% down.
Some DSCR lenders accept Airbnb income. Hard money doesn't care about rental type — it's focused on the asset value.