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in Glendora, CA
Glendora investors typically choose between DSCR loans for long-term rentals and hard money for fix-and-flip projects. Both skip personal income verification, but they serve completely different investment timelines.
DSCR loans close in 2-3 weeks and carry conventional-style rates. Hard money funds in 5-10 days but costs 9-14% with substantial points upfront.
DSCR loans approve based on rental income covering the mortgage payment, not your tax returns. You need a ratio above 1.0—meaning rent exceeds the PITI payment by enough margin to satisfy underwriting.
Rates run 7-9% with 20-25% down on investment properties. These are 30-year mortgages designed for properties you plan to rent long-term, not sell in six months.
Glendora single-family rentals typically generate strong ratios if priced correctly. You can use market rent estimates even if the property sits vacant at closing.
Hard money lenders fund based on the property's after-repair value, not your financials. They'll lend 65-75% of ARV, which covers purchase plus renovation if the deal pencils out.
Expect 9-14% rates with 2-5 points upfront. Terms run 6-24 months—these are bridge loans meant for quick turnarounds, not decade-long holds.
Approval happens in days, not weeks. If you find a Glendora fixer that needs $80K in work but adds $200K in value, hard money gets you to closing before another buyer beats you.
Local decision guide
Use this comparison to weigh DSCR Loans and Hard Money Loans through local payment fit, eligibility, documentation, and timing before choosing a path in Glendora.
Glendora investors typically choose between DSCR loans for long-term rentals and hard money for fix-and-flip projects. Both skip personal income verification, but they serve completely different investment timelines.
DSCR loans close in 2-3 weeks and carry conventional-style rates. Hard money funds in 5-10 days but costs 9-14% with substantial points upfront.
DSCR loans approve based on rental income covering the mortgage payment, not your tax returns. You need a ratio above 1.0—meaning rent exceeds the PITI payment by enough margin to satisfy underwriting.
Timeline separates these loans more than anything. DSCR works for properties you'll own and rent for years. Hard money fits deals where you're out in under 12 months after renovations.
Cost structure differs completely. DSCR has lower rates but stricter underwriting on property condition and rental comps. Hard money charges more but funds properties that wouldn't pass conventional appraisal.
Exit strategies run opposite directions. DSCR borrowers refinance into better terms after seasoning or hold indefinitely. Hard money borrowers sell the renovated property or immediately refi into permanent financing.
Choose DSCR if you're buying a Glendora rental that's tenant-ready or needs minor cosmetic work. Your plan involves collecting rent for years, building equity through appreciation and paydown.
Pick hard money when the property needs significant rehab work or you're flipping it. Glendora fixers in older neighborhoods near downtown often make sense—buy distressed, renovate fast, sell or refinance out.
Many investors use both strategically. Hard money for acquisition and renovation, then refinance into DSCR once repairs finish and you have a tenant locked in at market rent.
Only if it's habitable and passes appraisal in current condition. Major rehab projects need hard money first, then refi to DSCR after work completes.
DSCR needs 20-25% down minimum. Hard money typically requires 25-35% depending on the after-repair value and your experience level.
DSCR takes 2-3 weeks with clean title and appraisal. Hard money can close in 5-10 days if property valuation comes in quickly.
Yes, both handle 2-4 unit properties. DSCR works great for stabilized duplexes. Hard money fits fourplex conversions or major rehabs.
DSCR costs less over any hold period beyond 18 months. Hard money's points and high rates only make sense for short-term bridge scenarios.
Correct. Neither loan requires W-2s or tax returns. DSCR uses property income; hard money uses asset value and equity position.