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in Inglewood, CA
Inglewood's rental market draws investor attention, especially near SoFi Stadium and the Forum. Both DSCR and hard money loans skip W-2 income requirements, but they serve different investment strategies.
DSCR loans work for buy-and-hold investors who want long-term financing. Hard money suits fix-and-flip projects or time-sensitive acquisitions that need fast capital.
DSCR loans qualify you based on rental income alone. Lenders calculate the property's monthly rent divided by the monthly mortgage payment (principal, interest, taxes, insurance).
Most lenders want a DSCR of 1.0 or higher, meaning rent covers the full payment. You get 30-year terms at rates typically 1-2% above conventional loans. No tax returns or pay stubs required.
Hard money lenders fund based on property value, not your income or the rent. They lend 65-75% of after-repair value (ARV) on fix-and-flip deals, sometimes 80% on stabilized properties.
These are short-term bridge loans with 6-24 month terms. Rates run 8-12% with 2-4 points upfront. You pay interest-only monthly, then refinance or sell before the balloon payment hits.
DSCR loans cost less and run longer, but require stable rental income and better credit. Hard money costs more but closes faster and works on properties that need major rehab.
On a $600K Inglewood duplex, DSCR might charge 7.5% for 30 years with $3,500 monthly payments. Hard money might charge 10% plus 3 points for 12 months, then you refinance into DSCR or sell.
Use DSCR when you're buying a property that's already rented or rent-ready. It makes sense for portfolio growth when you want to hold long-term and the numbers support 30-year financing.
Use hard money when you need to close in days, the property needs work before it can rent, or you're competing against cash buyers. Plan your exit before you sign—either a cash-out refi into DSCR or a sale within 12-18 months.
Yes, that's the standard play on fix-and-flip projects. Renovate, stabilize the rent, then refi into DSCR for long-term hold within 6-12 months.
DSCR loans have standard closing costs around 2-3%. Hard money charges 2-4 points upfront plus closing costs, making them more expensive at origination.
Yes. DSCR lenders go up to 8 units typically. Hard money lenders focus on 1-4 units but some fund small apartment buildings.
Most hard money lenders care more about deal quality than credit score. Some approve borrowers in the 500s if the property value supports the loan.
Most lenders require 1.0 or higher, meaning rent covers the full payment. Some accept 0.75 DSCR with larger down payments and strong credit.