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in Pasadena, CA
Pasadena attracts serious real estate investors. Both DSCR and hard money loans serve investors — but they solve very different problems.
One is built for long-term holds. The other is built for speed. Picking the wrong one costs you time and money.
DSCR loans qualify you based on rental income, not your personal income. The property has to carry itself.
Lenders look at your debt service coverage ratio — rent divided by the monthly loan payment. A ratio above 1.0 means the property breaks even or better.
These are 30-year loans. Rates are higher than conventional, but terms are stable and repeatable.
Hard money loans are asset-based. The lender cares about the property's value — not your income or credit profile.
Terms are short, typically 6 to 24 months. These loans fund fast, sometimes in days.
Fix-and-flip investors use hard money to move quickly on Pasadena properties before competitors can.
DSCR loans have lower rates and longer terms. Hard money loans close faster with far less paperwork.
Hard money lenders charge higher rates and points. You pay a premium for speed and flexibility.
DSCR loans require a stabilized, rent-ready property. Hard money works on properties that need work.
Buying a Pasadena rental you plan to hold? DSCR is almost always the right call. You get stable long-term financing tied to the property's income.
Flipping a home or buying distressed? Use hard money to win the deal fast, then refinance into DSCR once it's stabilized and rented.
Some investors use both — hard money to acquire, DSCR to hold. SRK CAPITAL structures that transition regularly.
No. DSCR lenders require the property to be rent-ready. Use hard money first, then refinance into DSCR once it's stabilized.
DSCR loans typically require 620–680 minimum. Hard money lenders focus on the asset and may approve lower scores.
Hard money wins on speed. It can close in days. DSCR loans take longer — usually 3 to 4 weeks minimum.
Yes. Both work on multi-family. DSCR lenders often go up to 4 units; some hard money lenders go higher.
Yes — and this is a common strategy. Once the property is rented and stabilized, SRK CAPITAL can move you into long-term DSCR financing.
DSCR loans carry lower rates than hard money. Rates vary by borrower profile and market conditions, but hard money premiums are significant.