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in Culver City, CA
Culver City investors face a clear choice between long-term rental financing and short-term fix-and-flip funding. DSCR loans use property cash flow to qualify you, while hard money lenders approve based on the asset itself.
Both skip traditional income verification, but they serve completely different investment strategies. DSCR works for buy-and-hold rental properties. Hard money funds quick acquisitions and renovations with bridge capital.
DSCR loans qualify you based on whether the property's rent covers the mortgage payment. Lenders want a ratio of 1.0 or higher, meaning rent equals or exceeds your monthly debt service.
You get 30-year fixed terms with rates typically 1-2% above conventional loans. No tax returns, no W-2s, no employment verification. The property either cash flows or it doesn't.
Expect 20-25% down and credit scores around 640 minimum. Rates vary by borrower profile and market conditions, but these loans work well for Culver City's strong rental market where properties command premium rents.
Hard money loans fund fast based on property value, not your financials. Lenders care about the asset's after-repair value and your exit strategy, approving deals in days instead of weeks.
Terms run 6-24 months with rates between 8-15%. You'll pay 2-4 points upfront. These are bridge loans designed to get you in and out quickly through a refinance or sale.
Down payments range from 10-30% depending on the deal and your experience. Credit matters less than the property's potential and your track record flipping homes or managing renovations.
Timeline separates these loans completely. DSCR takes 3-4 weeks to close with full appraisals and underwriting. Hard money closes in 5-10 days because lenders skip traditional verification and focus on the asset.
Cost structure differs dramatically. DSCR loans charge conventional-style rates for 30 years. Hard money hits you with double-digit rates and points because you're paying for speed and flexibility.
Purpose matters most. DSCR finances rental properties you plan to hold long-term. Hard money funds acquisitions, rehabs, and quick flips where time costs more than interest rate. They're not competing products—they solve different problems.
Choose DSCR if you're buying a Culver City rental property to hold and cash flow. You want low rates, long terms, and financing that treats your investment like the income-producing asset it is.
Pick hard money when you're competing in a hot market and need to close fast, or when you're renovating a property to flip or refinance within 12 months. The higher cost buys you speed and approval certainty.
Many investors use both strategically. Hard money gets you into a distressed property quickly. After renovation, you refinance into a DSCR loan to lock in long-term rental financing at sustainable rates.
No. DSCR loans require rental income to qualify, which means the property needs a tenant in place. Fix-and-flip deals need hard money or cash.
Most hard money lenders close in 5-10 business days. Some can fund in 3 days if you have the property under contract and basic financials ready.
No formal experience required. Lenders care about the property's cash flow numbers, not your landlord resume. First-time investors qualify regularly.
Typically 70-75% of after-repair value. Your down payment covers the gap between purchase price, renovation costs, and the loan amount.
Yes. After renovations are complete and you have a tenant in place, you refinance the hard money loan into a DSCR loan with better terms.
DSCR loans work exceptionally well for 2-4 unit properties with tenants. Hard money funds multi-family acquisitions if you're planning major renovations before stabilizing.