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in Bellflower, CA
Bellflower investors often face a choice between DSCR and hard money financing. Both skip W-2 income verification, but they serve different purposes and timelines.
DSCR loans work for stable rental properties. Hard money fits fast flips and rehabs. Your strategy determines which loan makes sense.
DSCR loans qualify you based on rental income, not your tax returns. If the property generates enough rent to cover the mortgage payment, you can get approved.
These are long-term loans with 30-year terms and fixed rates. You need a 1.0 or higher debt service coverage ratio—meaning rent covers or exceeds the payment.
Rates run 1-2% above conventional loans. Down payments start at 20-25%. Credit scores typically need to hit 620 minimum for approval.
Hard money loans fund based on property value, not your financials. Lenders care about the asset and your exit strategy—how you'll pay them back.
These are short-term loans, typically 6-24 months. Rates range from 8-15% with 2-5 points in fees upfront.
You can close in days, not weeks. Most hard money lenders fund 65-75% of purchase price or after-repair value. Credit matters less than the deal itself.
Timeline separates these loans. DSCR takes 20-30 days to close. Hard money can fund in under a week when you need to move fast.
Cost structure differs dramatically. DSCR has lower rates but requires rental income documentation. Hard money costs more but cares only about property value.
Terms and purpose diverge completely. DSCR holds rental properties long-term. Hard money bridges to a flip sale or refinance within months.
Choose DSCR for Bellflower rentals you plan to hold. The property needs to be tenant-ready and generating enough rent to cover the payment plus expenses.
Pick hard money for distressed properties, quick acquisitions, or rehab projects. You need a clear exit—either a sale or refinance into permanent financing.
Most Bellflower investors use hard money for the buy and fix, then refinance into DSCR once tenants are in place. This strategy maximizes leverage across both loan types.
No, DSCR lenders require rent-ready properties. The property must generate income at closing or very soon after.
We've closed hard money deals in 5 business days. Speed depends on clear title and borrower responsiveness.
DSCR costs less over time with lower rates. Hard money costs more upfront but you're only paying for months, not years.
DSCR typically requires 6-12 months reserves. Hard money cares more about exit strategy than cash reserves.
Yes, this is common. Fix the property, get tenants in place, then refinance to DSCR for long-term hold.