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in Agoura Hills, CA
Most Agoura Hills investors hit the same wall: strong property but income that doesn't show on tax returns. Both DSCR and hard money loans skip traditional income verification, but they solve different problems.
DSCR loans work for buy-and-hold investors who want rental portfolio financing. Hard money fits fix-and-flip projects or bridge deals that close fast. Picking wrong costs you thousands in rates and fees.
DSCR loans qualify you based on rental income, not your tax returns. If the property generates enough rent to cover the mortgage payment by 1.0x to 1.25x, you're approved. Terms run 30 years fixed or adjustable.
Rates typically sit 1.5 to 2.5 points above conventional loans. You need 20-25% down and a 640+ credit score. These loans close in 20-30 days and work for single-family rentals, small multifamily, or vacation properties.
Hard money lenders base approval on the property's after-repair value, not your financials. You get funded in 5-10 days with minimal documentation. Rates run 8-12% with 2-5 points upfront, and terms last 6-24 months.
These loans work when speed matters more than cost. You need 10-25% down depending on experience and deal quality. Credit matters less than your exit strategy and rehab budget. Most lenders cap loan-to-value at 65-75% of ARV.
Rate spread makes the biggest impact. DSCR loans run 7-9% while hard money hits 9-13%. That 3-point gap means $750 monthly on a $500k loan. DSCR amortizes over 30 years; hard money balloons in 12-18 months.
Approval speed splits opposite directions. Hard money closes in days because lenders care about property value, not your financials. DSCR takes 3-4 weeks with full appraisals and rent analysis. Use DSCR when you're holding; use hard money when you're flipping.
Pick DSCR if you're buying a rental in Agoura Hills and holding it. The lower rate saves you money every month, and 30-year amortization gives you predictable cash flow. You need stable rent comps and time to close.
Choose hard money when you're flipping a property or need bridge financing before refinancing into DSCR. Speed matters more than rate when you're competing with cash buyers. Plan your exit before you apply—most lenders want to see how you'll pay them back in 12 months.
No, DSCR loans require an occupied rental property generating income. Use hard money for renovations, then refinance into DSCR once the property rents.
DSCR loans have lower total costs. Hard money charges 2-5 points upfront plus higher rates, which adds up fast even on short terms.
Yes, but hard money lenders prefer higher loan amounts. DSCR loans work better for smaller Agoura Hills properties if you're holding them as rentals.
Yes, that's a common strategy. Flip the property using hard money, then refinance into DSCR once it's rented and you've built equity.
Hard money closes in 5-10 days, letting you compete with cash buyers. DSCR takes 3-4 weeks for appraisals and underwriting.