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in Maywood, CA
Maywood investors weighing DSCR loans against hard money face a fundamental choice about speed versus cost. DSCR loans rely on the property's income to qualify. Hard money lenders care mostly about the asset itself.
The Los Angeles County median household income sits at $87,760, which matters because DSCR borrowers still need personal reserves and a solid credit profile. Hard money buyers skip income verification entirely but pay steeper rates and fees upfront.
DSCR loans let you qualify on the rental income the property generates, not your personal W-2s. Lenders look at the lease agreement or market rent to determine how much you can borrow.
You'll still need solid credit—typically 620 or higher—and reserves equal to several months of the mortgage payment. Rates sit lower than hard money because the lender has more time to underwrite and the loan is fully documented. Closing takes 30 to 45 days.
Hard money lenders fund based on the property value and your equity stake, not income. No tax returns, no employment verification, no credit score minimums. If the deal makes sense and you have skin in the game, they'll lend.
The tradeoff is cost and speed. Expect rates 8% to 12% and origination fees of 2% to 5%. Closing happens in 7 to 14 days. Hard money works for fix-and-flip projects, bridge financing, or when you need capital fast and conventional options have already said no.
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 Maywood.
Maywood investors weighing DSCR loans against hard money face a fundamental choice about speed versus cost. DSCR loans rely on the property's income to qualify. Hard money lenders care mostly about the asset itself.
The Los Angeles County median household income sits at $87,760, which matters because DSCR borrowers still need personal reserves and a solid credit profile. Hard money buyers skip income verification entirely but pay steeper rates and fees upfront.
DSCR loans let you qualify on the rental income the property generates, not your personal W-2s. Lenders look at the lease agreement or market rent to determine how much you can borrow.
DSCR loans cost less over time. A typical DSCR rate runs 2 to 3 points below hard money. On a meaningful loan amount, that difference compounds into thousands of dollars annually. Hard money's speed and simplicity come at a premium.
Qualification paths diverge sharply. DSCR requires documentation—lease, appraisal, credit report, reserves. Hard money skips all of that. If you're buying a property with existing tenants and stable rent, DSCR makes financial sense.
Down payment expectations differ too. DSCR lenders typically want 20% to 25% down. Hard money often accepts 25% to 30% but funds faster. Neither program offers zero-down options like FHA or VA.
Choose DSCR if you're buying a Maywood rental with existing tenants or strong market rent. You have time to close, solid credit, and reserves in the bank. The lower rate saves real money over a 5 or 10-year hold.
Choose hard money if you're flipping a distressed property, need capital in two weeks, or your credit is below 620. The higher cost is worth it when the alternative is no deal at all.
Yes, but it's slower than hard money. DSCR lenders want proof of income—either existing leases or a market rent appraisal. If you're buying to renovate and sell in 6 months, hard money closes faster and doesn't care about the rental income.
Most DSCR lenders want 620 or higher. Some go down to 600 with compensating factors like extra reserves. Hard money has no credit requirement—the property value is what matters.
DSCR typically requires 20% to 25% down. Hard money often accepts 25% to 30% but closes faster. Both are higher than conventional or FHA, which reflect the investor-property risk profile.
Hard money lenders fund fast and skip underwriting. They charge 8% to 12% rates plus 2% to 5% origination fees because they're taking on more risk and moving capital quickly. DSCR lenders take 30 to 45 days and charge less.
Yes. Many investors use hard money to close fast, then refinance into DSCR once the property is stabilized with tenants and a lease. That swap saves thousands in interest over time.