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in Bradbury, CA
Bradbury investors face a choice between DSCR loans for rental income and hard money for quick acquisitions. Both skip W-2 income checks, but they serve different investment timelines.
DSCR loans work for long-term rental holds with competitive rates. Hard money gets you into deals fast but costs more upfront.
DSCR loans qualify you based on rental income, not tax returns. Lenders want a ratio of 1.0 or higher—meaning rent covers the mortgage payment.
You get 30-year fixed terms with rates 1-2% above conventional. Down payments start at 20%, and you can close in 2-3 weeks.
These work best when you're buying stabilized rentals to hold. The property needs current or projected rental income to qualify.
Hard money lenders fund based on property value, not your income or credit. They'll lend on distressed properties most banks won't touch.
Expect 8-12% rates with 2-4 points upfront. Terms run 6-24 months, and you can close in 5-10 days.
This is bridge financing for flips, major rehabs, or time-sensitive acquisitions. Plan your exit before you close—refinance or sell to pay it off.
DSCR loans cost less but require rental income proof. Hard money costs more but funds properties with no income or major issues.
Timeline matters: DSCR takes 2-3 weeks, hard money closes in under 10 days. DSCR offers 30-year terms, hard money maxes out at 2 years.
Rate gap is significant. DSCR runs 7-9%, hard money hits 10-14% with points. Your holding period determines which cost structure works.
Choose DSCR when buying rental properties you'll hold long-term. The lower rate saves thousands annually on properties generating income.
Pick hard money for flips, heavy rehabs, or competitive Bradbury deals where speed matters. You'll pay more, but you get in fast.
Many investors use both: hard money to acquire and renovate, then refinance into DSCR for the long hold. That combination maximizes speed and minimizes long-term cost.
DSCR loans require rental income, so they don't work for flips. Use hard money for acquisitions you'll renovate and sell within a year.
Hard money closes in 5-10 days. DSCR takes 2-3 weeks since lenders verify rental income and order full appraisals.
Yes, DSCR rates run 7-9% on 30-year terms. Hard money hits 10-14% with 2-4 points and maxes at 24-month terms.
Absolutely. Many investors use hard money to buy and renovate, then refinance into DSCR once the property has rental income.
Hard money funds properties in any condition. DSCR lenders require properties to be rentable or already generating income.