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in Montebello, CA
Montebello investors buying multifamily or single-family rentals face a choice: DSCR loans for long-term holds or hard money for quick flips. Both skip personal income verification, but they serve completely different strategies.
DSCR loans act like traditional mortgages with 30-year terms and competitive rates. Hard money works like a bridge loan with higher costs but fast closings and renovation funding built in.
DSCR loans approve based on rental income divided by monthly mortgage payment. You need a ratio above 1.0 for most lenders, meaning rent covers your full payment.
Expect 20-25% down, rates 1-2% above conventional, and 30-year fixed terms. No tax returns or pay stubs required — just property cash flow and decent credit around 680.
These work for Montebello investors holding properties long-term. Close in 30-45 days, refinance when you want, and build a portfolio without income documentation headaches.
Hard money lenders fund based on property value, not your financials. They care about equity and exit strategy — how you'll pay them back in 6-24 months.
Rates run 9-14% with 2-5 points upfront. You'll put down 20-30%, close in 7-14 days, and pay interest-only monthly payments until you sell or refinance.
Montebello fix-and-flip investors use these to buy distressed properties fast, fund renovations through draws, then exit via sale or DSCR refinance. Speed matters more than cost.
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 Montebello.
Montebello investors buying multifamily or single-family rentals face a choice: DSCR loans for long-term holds or hard money for quick flips. Both skip personal income verification, but they serve completely different strategies.
DSCR loans act like traditional mortgages with 30-year terms and competitive rates. Hard money works like a bridge loan with higher costs but fast closings and renovation funding built in.
DSCR loans approve based on rental income divided by monthly mortgage payment. You need a ratio above 1.0 for most lenders, meaning rent covers your full payment.
DSCR loans cost less but take longer. Hard money costs more but closes faster. That timeline difference determines which loan fits your Montebello deal.
DSCR requires stabilized rental income and better credit. Hard money works on vacant properties, major rehabs, and borrowers with credit issues — lenders focus on asset value and experience.
Exit strategies differ completely. DSCR loans you keep for years. Hard money you repay within months through sale, refinance, or another property flip.
Choose DSCR for Montebello rentals you plan to hold. If the property generates rent now and you can wait 30-45 days to close, DSCR wins on cost and terms.
Pick hard money for distressed properties needing work, competitive bidding situations, or quick closings. Pay the premium when speed or renovation funding matters more than rate.
Many investors use both strategically. Buy and renovate with hard money, then refinance into DSCR once the property stabilizes and generates qualifying rental income.
No. DSCR lenders require properties in rent-ready condition with documented rental income. Use hard money for major rehabs, then refinance to DSCR.
Hard money closes in 7-14 days. DSCR loans take 30-45 days due to appraisal requirements and rental income verification.
DSCR lenders accept new investors with strong credit. Hard money lenders prefer experience but may approve first deals with larger down payments.
DSCR requires 680+ typically. Hard money lenders care less about credit, sometimes approving scores in the 600s based on equity and experience.
Yes. This is common strategy — buy and renovate with hard money, then refinance to lower-rate DSCR once property generates qualifying rent.