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in Pico Rivera, CA
Pico Rivera investors face a choice between two non-QM financing paths. DSCR loans work for buy-and-hold rental plays, while hard money fits flips and quick renovations.
Both skip traditional income verification. The difference comes down to timeline, rates, and what you're doing with the property after closing.
DSCR loans qualify you based on the property's rental income, not your tax returns. If the rent covers 1.0x to 1.25x the mortgage payment, you're in.
These are 30-year mortgages structured like conventional loans. Rates run 1-3% higher than agency loans, but you avoid full income documentation.
Expect to put down 20-25% and show 6-12 months reserves. Closing takes 30-45 days, similar to traditional financing timelines.
Hard money lenders fund based on the property's after-repair value, not your financials. They're betting on the asset, not your income or credit score.
These are 6-24 month bridge loans with rates between 8-15%. Points range from 2-5% of the loan amount at closing.
You can close in 5-10 days with minimal documentation. Most lenders fund 65-75% of purchase price or ARV, whichever is lower.
DSCR loans cost less and last 30 years. Hard money costs more but closes in days, not weeks.
DSCR requires the property to produce rental income at closing. Hard money doesn't care if it's occupied or condemned—they're looking at ARV.
Credit matters more for DSCR (usually 660+ minimum). Hard money lenders will go down to 550 if the deal math works.
Use DSCR when you're buying a turnkey rental or a property that'll be rent-ready within 30 days. The lower rate saves thousands over time.
Use hard money when you're buying distressed, flipping, or need to close before another buyer beats you. Pay the premium for speed and flexibility.
Many Pico Rivera investors start with hard money to acquire and renovate, then refinance into DSCR once the property is leased. That sequence captures both advantages.
Not until it's rent-ready. DSCR lenders need proof of rental income or a signed lease at closing, so the property must be habitable.
Yes, but they order it themselves and fund based on ARV. Some use broker price opinions instead of full appraisals to save time.
DSCR wins on rate and fees. Hard money costs more upfront and monthly, but you're paying for speed and flexibility, not long-term affordability.
Rarely. Most lenders specialize in one or the other, which is why working with a broker who accesses both markets matters.
DSCR typically requires 660+. Hard money lenders will go as low as 550 if the deal has strong equity and clear exit strategy.