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in Baldwin Park, CA
Baldwin Park investors face a choice between two non-QM financing paths. DSCR loans use rental income to qualify, while hard money lenders fund based on property value.
Both skip traditional income verification, but they serve different investment timelines. DSCR works for buy-and-hold rentals, hard money for fix-and-flip projects.
Your choice depends on whether you need speed or stability. Hard money closes in days but costs more; DSCR takes longer but offers lower rates and longer terms.
DSCR loans qualify you based on the property's rental income divided by its debt. If the property generates enough rent to cover the mortgage, you're approved—no tax returns needed.
Rates typically run 1-2% above conventional loans. Terms stretch 30 years fixed, making payments predictable for long-term rental portfolios in Baldwin Park's multi-family market.
You'll need 20-25% down and a credit score above 620. The property must appraise and show rental income that exceeds the monthly payment by at least 1.0x.
Hard money loans fund based on after-repair value, not current condition. Lenders advance 65-75% of ARV, giving you capital to buy and renovate distressed Baldwin Park properties.
Expect rates between 9-14% with 2-4 points upfront. Terms run 6-24 months because these aren't meant to be permanent financing—you refinance or sell once repairs finish.
Credit scores matter less than experience and equity. Some lenders approve deals with 580 scores if the property's value supports the loan and your exit strategy makes sense.
Local decision guide
Use this comparison to weigh DSCR Loans and Hard Money Loans through local payment fit, eligibility, documentation, and timing before choosing a path in Baldwin Park.
Baldwin Park investors face a choice between two non-QM financing paths. DSCR loans use rental income to qualify, while hard money lenders fund based on property value.
Both skip traditional income verification, but they serve different investment timelines. DSCR works for buy-and-hold rentals, hard money for fix-and-flip projects.
Your choice depends on whether you need speed or stability. Hard money closes in days but costs more; DSCR takes longer but offers lower rates and longer terms.
Hard money prioritizes speed over cost—you pay premium rates for fast closings on time-sensitive deals. DSCR trades speed for affordability with rates closer to conventional loans.
Term length separates them dramatically. DSCR locks in 30-year fixed payments; hard money expects payoff within two years through sale or refinance.
Qualification criteria differ completely. DSCR needs steady rental income and decent credit; hard money cares about property equity and your flip experience more than scores.
Down payments vary by purpose. DSCR requires 20-25% for stabilized rentals; hard money advances more on ARV but expects you to fund repairs from reserves or draws.
Choose hard money when you're flipping Baldwin Park properties or need to close before another buyer. The higher cost pays for speed and flexibility on distressed assets.
Pick DSCR when you're buying stabilized rentals to hold long-term. The rental income qualifies you without tax returns, and 30-year terms keep cash flow predictable.
Don't use hard money for buy-and-hold—you'll bleed cash on those rates. Don't use DSCR for flips—the slower process loses you deals, and you don't need 30-year financing for a six-month project.
No, DSCR requires stabilized rental income and 30-year terms. Hard money fits flips because it funds renovations and expects quick payoff through sale.
Hard money closes in 5-10 days versus 3-4 weeks for DSCR. You pay higher rates for that speed, but it wins competitive bidding situations.
Yes, both are non-QM products that skip W-2 and tax return verification. DSCR uses rental income; hard money uses property equity and ARV.
DSCR typically requires 620+ credit. Hard money lenders may approve 580+ scores if you have significant equity and flip experience.
Yes, that's a common strategy. Flip with hard money, stabilize the property with tenants, then refinance into a 30-year DSCR loan to hold long-term.
DSCR works better for stabilized multi-family rentals. Hard money fits if you're renovating vacant units before leasing and refinancing.