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in La Canada Flintridge, CA
La Cañada Flintridge investment properties command premium prices and steady rental demand. Choosing the right financing determines your profit margin and timeline.
DSCR loans focus on rental income and work for long-term holds. Hard money loans prioritize speed and equity for fix-and-flip projects.
DSCR loans qualify you based on projected rent, not W-2s or tax returns. If the property generates enough income to cover the mortgage, you're approved.
Most lenders require 1.0 DSCR minimum—monthly rent equals or exceeds the monthly payment. You'll need 20-25% down and a 620+ credit score.
Rates run 1-2% higher than conventional loans but stay fixed for 30 years. This works for landlords building a rental portfolio in high-rent areas.
Hard money loans fund in days, not weeks. Lenders care about the property's value and your equity, not credit scores or tax returns.
You'll pay 9-14% interest with 2-5 points upfront. Terms last 6-24 months because these are bridge loans for short-term projects.
Expect 65-75% loan-to-value, meaning you bring 25-35% down. Speed costs money, but it locks in deals that require fast cash.
DSCR loans cost less and last decades. Hard money loans fund faster but charge significantly higher rates and fees.
DSCR requires appraisals and rent analysis, taking 3-4 weeks to close. Hard money skips most underwriting and closes in a week.
DSCR works when you plan to rent the property long-term. Hard money works when you need quick capital to renovate and resell within a year.
Pick DSCR if you're buying a turnkey rental or planning to hold for years. The lower rate saves thousands monthly and builds equity steadily.
Pick hard money if you're flipping a fixer or need to close before a conventional loan could fund. The high cost buys speed and flexibility.
Many investors use hard money to acquire and renovate, then refinance into a DSCR loan once the property is rent-ready. That strategy captures both advantages.
Most DSCR lenders require the property to be rent-ready at closing. Hard money works better for fixer properties, then you refinance to DSCR.
They review credit but prioritize equity and exit strategy. Scores below 600 still get approved if you bring enough down payment.
Most lenders want 1.0 minimum, meaning rent covers the full mortgage payment. Higher ratios unlock better rates and terms.
Typical terms run 12 months with options to extend. You pay monthly interest-only, then the full principal at maturity or sale.
DSCR works if you can document projected rental income from similar properties. Some lenders count vacation rental income with strong booking history.