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in Carson, CA
Carson investors face a choice between two non-QM loan types that skip traditional income verification. DSCR loans work for rental property cash flow, while hard money fits fix-and-flip timelines.
Most Carson investors start with hard money for rehabs, then refinance into DSCR loans for long-term holds. Each loan serves a different phase of the investment cycle.
DSCR loans qualify you based on the property's rental income divided by the mortgage payment. If the ratio hits 1.0 or higher, the property covers its own debt regardless of your W-2 income.
These loans run 30 years with rates 1-2% above conventional mortgages. You need 20-25% down and a 620+ credit score, but no tax returns or pay stubs.
Carson rental properties with strong lease agreements close in 30-45 days. Lenders pull a rent schedule or appraisal to verify income potential.
Hard money loans fund in 5-10 days based on the property's after-repair value, not your income or credit. Rates run 8-12% with 2-4 points upfront.
Terms last 6-24 months, designed for quick purchases and rehabs. You put down 10-20% and pay interest-only monthly while renovating.
Carson fix-and-flip projects use hard money to buy distressed properties at auction or off-market. You refinance or sell before the balloon payment hits.
DSCR loans cost less but take longer to close. Hard money costs more but funds immediately when speed matters more than rate.
DSCR requires stable rental income and better credit. Hard money approves borrowers with 550 credit scores if the property deal makes sense.
Exit strategies differ completely. DSCR loans work for buy-and-hold investors building rental portfolios. Hard money serves flippers who plan to sell or refinance within a year.
Choose DSCR loans if you're buying turnkey Carson rentals to hold long-term. The property needs to generate enough rent to cover the mortgage with minimal repairs needed.
Pick hard money if you're buying distressed Carson properties to renovate and flip. You need fast funding and plan to exit within 12 months through sale or refinance.
Many Carson investors use both: hard money to buy and renovate, then refinance into a DSCR loan if they decide to keep the property as a rental.
No, DSCR loans require rental income documentation and 30-year terms. Hard money fits flip timelines better with short-term funding.
DSCR loans run 1-2% above conventional rates. Hard money costs 8-12% but funds faster when timing matters more than rate.
DSCR loans need 620+ credit scores. Hard money approves 550+ scores if the property deal has enough equity cushion.
Hard money closes in 5-10 days for competitive bids. DSCR loans take 30-45 days but cost significantly less over time.
Yes, most Carson investors use this strategy. Complete renovations, lease the property, then refinance into lower DSCR rates for long-term hold.