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in Hidden Hills, CA
Hidden Hills investors often choose between DSCR and hard money loans — both are non-QM products that ignore W-2 income. The difference comes down to hold time and strategy.
DSCR loans work for buy-and-hold rental properties with steady income. Hard money fits fix-and-flip projects or purchases that need fast close and short-term funding.
DSCR loans qualify based on the property's rental income divided by the monthly mortgage payment. You need a ratio above 1.0 for most lenders, though some accept 0.75 with bigger down payments.
Rates typically run 1-2% higher than conventional mortgages. Terms stretch 30 years with no prepayment penalty, making them ideal for long-term rental portfolios in high-end markets like Hidden Hills.
Hard money loans fund based on after-repair value and equity position. Lenders care about the property, not your credit score or rental projections.
These are short-term tools — expect 6 to 24 month terms with rates between 9-14%. You pay points upfront, usually 2-4% of the loan amount, in exchange for speed and flexibility.
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 Hidden Hills.
Hidden Hills investors often choose between DSCR and hard money loans — both are non-QM products that ignore W-2 income. The difference comes down to hold time and strategy.
DSCR loans work for buy-and-hold rental properties with steady income. Hard money fits fix-and-flip projects or purchases that need fast close and short-term funding.
DSCR loans qualify based on the property's rental income divided by the monthly mortgage payment. You need a ratio above 1.0 for most lenders, though some accept 0.75 with bigger down payments.
DSCR loans take 3-4 weeks to close and require appraisals, title work, and rental income verification. Hard money closes in under two weeks with minimal paperwork — just property value matters.
Cost structure splits dramatically. DSCR offers lower rates but requires full underwriting. Hard money charges double-digit rates and points but skips the documentation maze entirely.
Exit strategy dictates the right choice. DSCR assumes you'll hold the property and collect rent. Hard money assumes you'll sell or refinance within a year.
Choose DSCR if you're buying a rental property you plan to hold. It offers lower monthly payments and long-term stability — critical in Hidden Hills where properties appreciate slowly but reliably.
Choose hard money if you're flipping a house, need to close in days to beat competing offers, or the property doesn't qualify for traditional financing yet. Speed and flexibility justify the cost.
Some investors use both in sequence. Hard money funds the purchase and renovation, then you refinance into a DSCR loan once the property is rent-ready and stabilized.
Yes, but only as a bridge. Hard money terms run 6-24 months, so you'd need to refinance into a DSCR loan or sell before the balloon payment hits.
DSCR loans run 1-2% above conventional rates. Hard money starts around 9% and climbs from there based on leverage and property condition.
Yes. Lenders use an appraisal with a rent schedule or actual lease agreements to calculate the debt service coverage ratio for qualification.
Most hard money lenders close in 5-10 business days. Some can fund in 72 hours if the property is clean and you bring enough equity.
Most DSCR lenders require 620+ credit, though some go down to 600 with compensating factors like higher down payments or stronger rental income.