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in Industry, CA
Industry's industrial and commercial zones attract investors needing fast capital. Both DSCR and hard money loans skip personal income verification, but they serve different investor timelines.
DSCR loans work for cash-flowing rentals you plan to hold. Hard money fits quick flips and distressed properties. Your exit strategy determines which loan makes sense.
DSCR loans qualify you based on rental income alone. Lenders calculate your property's monthly rent divided by the monthly mortgage payment. A ratio above 1.0 means the property pays for itself.
You get 30-year fixed terms with rates 1-2% above conventional loans. Expect 20-25% down and credit scores above 620. DSCR works when you want to hold the property long-term and collect rent.
Hard money lenders fund based on the property's after-repair value, not your financials. You can close in 5-10 days with minimal documentation. These loans prioritize the asset over the borrower.
Terms run 6-24 months with rates between 8-15%. Lenders charge 2-5 points upfront. Hard money fits fix-and-flip projects, bridge financing, or properties needing heavy rehab that won't qualify elsewhere.
Timeline separates these loans. DSCR takes 3-4 weeks to close with full appraisals and underwriting. Hard money closes in days with minimal documentation. If you need to lock up a distressed property in Industry, hard money wins on speed.
Cost structure differs drastically. DSCR offers lower rates for long holds but requires steady rental income. Hard money costs more upfront and monthly but doesn't care about cash flow. Your holding period determines which makes financial sense.
Choose DSCR if you're buying a stabilized rental property in Industry that already generates income. You want 30-year fixed financing and plan to hold for years. The property must cash flow from day one to hit the DSCR ratio.
Pick hard money for distressed properties, quick flips, or bridge financing. You need speed over cost and have a clear exit plan within 12 months. Most investors refinance into DSCR loans once the property is renovated and rented.
Yes, most investors do exactly this. Fix the property with hard money, get tenants in place, then refinance to DSCR for long-term financing.
Hard money is easier. Lenders focus on the property's value and your equity, not credit or income. DSCR requires documented rent and decent credit.
Yes. Industry's commercial zones work with both loan types. Hard money handles raw land and heavy rehabs DSCR won't touch.
DSCR typically requires 20-25% down. Hard money varies from 10-30% based on after-repair value and your experience level.
Yes. Neither loan requires personal income verification. DSCR needs a lease agreement showing rent. Hard money just needs property value proof.