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in El Segundo, CA
El Segundo's proximity to LAX and the tech corridor makes it a strong rental market. But the right financing depends on whether you're buying a cash-flowing rental or a quick flip.
DSCR loans work for long-term rental properties that generate income. Hard money loans fund fast acquisitions and renovations with short timelines.
DSCR loans qualify you based on the property's rental income, not your W-2 or tax returns. If the rent covers 1.0x to 1.25x the mortgage payment, you can get approved.
These are 30-year fixed loans with rates typically 1-2% above conventional. You need 20-25% down and a 620+ credit score. No income verification required.
El Segundo's tight rental market supports strong cash flow. Single-family homes near the beach or corporate housing near aerospace employers perform well for DSCR scenarios.
Hard money loans are short-term financing secured by the property itself. Lenders approve based on the asset's current or after-repair value, not your income or the rental potential.
These loans fund in 7-14 days with rates between 8-12% and terms of 6-24 months. You pay interest-only monthly. They're built for fix-and-flip or bridge scenarios.
In El Segundo, hard money works for distressed properties near downtown or older homes that need updates to compete. You exit by selling or refinancing into permanent financing.
DSCR loans are cheaper and longer. Hard money costs more but funds faster. DSCR needs the property to cash flow today. Hard money only cares about the asset's value.
DSCR requires 620+ credit and standard appraisals. Hard money approves borrowers with recent credit issues and values properties based on quick assessments or broker price opinions.
Use DSCR when you're buying a rental that's rent-ready or nearly ready. Use hard money when you need fast capital for a flip, major rehab, or time-sensitive acquisition.
Choose DSCR if you're buying a rental property in El Segundo to hold long-term. It's the right fit for stabilized properties with tenants or homes that rent immediately after closing.
Choose hard money if you're flipping a distressed property or need to close in under two weeks. It's also the bridge if you're buying a property that needs work before it can qualify for DSCR.
Some investors use both: hard money to acquire and renovate, then refinance into a DSCR loan once the property is rent-ready. This combo maximizes speed and long-term affordability.
No. DSCR loans require the property to generate rental income. Flips don't produce rent, so they don't qualify. Use hard money instead.
DSCR loans have standard closing costs similar to conventional loans. Hard money loans often include higher origination fees and points.
No. Both loans are available to any investor. Your experience level may affect hard money terms but won't disqualify you.
Yes. Many investors use hard money to buy and renovate, then refinance into a DSCR loan once the property is rent-ready and stabilized.
Hard money is easier. It approves based on the property's value, not your credit or income. DSCR requires 620+ credit and positive cash flow.