Loading
Loading
in Bell Gardens, CA
Bell Gardens investors have two main paths when personal income won't qualify them for traditional financing. DSCR loans use rental income to approve long-term investments, while hard money lenders focus on the property itself for quick acquisitions.
Both options skip W-2 verification and tax returns. The difference comes down to your timeline and whether you're buying a rental that's already rent-ready or a property that needs work first.
DSCR loans approve you based on the property's rental income divided by the mortgage payment. Lenders want a ratio of 1.0 or higher, meaning rent covers the full payment. These are 30-year fixed loans with rates typically 1-2% above conventional.
You need 20-25% down and a 620+ credit score in most cases. The property must be rent-ready or already occupied. DSCR works for single-family homes, duplexes, and small multifamily properties across Bell Gardens.
Hard money lenders fund based on the property's after-repair value, not your financials. These are short-term loans lasting 6-24 months with rates between 9-15%. Approval takes days, not weeks, because underwriting focuses on the asset and your exit strategy.
Most hard money lenders in Bell Gardens want 10-30% down depending on experience and deal structure. They'll lend on distressed properties, vacant homes, and major rehabs that DSCR lenders won't touch. You pay higher rates for speed and flexibility.
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 Bell Gardens.
Bell Gardens investors have two main paths when personal income won't qualify them for traditional financing. DSCR loans use rental income to approve long-term investments, while hard money lenders focus on the property itself for quick acquisitions.
Both options skip W-2 verification and tax returns. The difference comes down to your timeline and whether you're buying a rental that's already rent-ready or a property that needs work first.
DSCR loans approve you based on the property's rental income divided by the mortgage payment. Lenders want a ratio of 1.0 or higher, meaning rent covers the full payment. These are 30-year fixed loans with rates typically 1-2% above conventional.
DSCR loans are for buy-and-hold investors who want long-term financing on stabilized rentals. Hard money is for short-term plays where you're buying below market, adding value through rehab, and either selling or refinancing within a year.
DSCR takes 3-4 weeks to close and requires full appraisals and rent comps. Hard money closes in 5-10 days with a quick property walk-through. DSCR rates run 7-9% currently. Hard money starts at 9% and climbs based on loan-to-value and project complexity.
Choose DSCR if you're buying a Bell Gardens rental that's already generating income or will be ready to rent within 30 days. You want lower rates, longer terms, and you're not in a bidding war where speed matters. This works for turnkey properties and light cosmetic updates.
Pick hard money when you're competing against cash buyers on a distressed property or funding a major rehab. You need to close fast and you have a clear exit plan to either sell or refinance into DSCR once the property is stabilized and rented.
Yes, most Bell Gardens investors do exactly this. You buy and rehab with hard money, then refinance into DSCR once the property is rent-ready and has rental income to qualify.
Hard money is easier because approval focuses on the deal, not your credit or income. DSCR requires 620+ credit and verifiable rental income from the property.
DSCR works well for 2-4 units. Hard money lenders vary, but most fund single-family and small multifamily projects in Bell Gardens if the numbers work.
DSCR typically requires 20-25% down. Hard money ranges from 10-30% depending on your experience level and the project risk.
Yes, if it's rent-ready within 30 days. Major structural work or full gut rehabs need hard money until the property meets rental standards.