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in Santa Fe Springs, CA
Santa Fe Springs investors face a clear choice: DSCR loans for buy-and-hold rentals or hard money for fix-and-flip projects. Both skip traditional income verification, but they serve completely different investment strategies.
DSCR loans work like conventional mortgages with rental income replacing W-2 paystubs. Hard money treats properties as collateral for fast cash regardless of your finances. Your timeline and exit strategy determine which makes sense.
DSCR loans fund based on rental income divided by the mortgage payment. If a Santa Fe Springs property rents for $3,000 monthly and your payment runs $2,400, your DSCR hits 1.25 — strong enough for approval at most lenders.
Terms mirror conventional loans: 30-year fixed options, rates in the 7-9% range, and 20-25% down payments. You get stable financing for properties you plan to hold long-term. Most lenders require 680+ credit and 12 months of reserves.
Hard money lenders fund based on after-repair value, not current condition. You're buying a distressed Santa Fe Springs duplex for $400k that'll appraise at $550k after rehab — hard money covers both purchase and construction based on that end value.
Expect 10-14% rates, 2-4 points upfront, and 6-24 month terms. Approval happens in days, not weeks. Credit matters less than equity and exit strategy. These loans cost more because they close fast and take on properties banks won't touch.
Timeline separates these loans. DSCR takes 21-30 days to close with full appraisals and underwriting. Hard money closes in a week because lenders care more about equity than paperwork. If you're competing on a foreclosure auction, hard money wins.
Cost structure flips based on hold period. DSCR loans charge lower rates over 30 years — you'll pay less if holding beyond 18 months. Hard money's high rates and points only make sense for 6-12 month renovations. Run the numbers on your specific timeline.
Choose DSCR if you're buying a turnkey Santa Fe Springs rental that's already leased or market-ready. The property needs to generate enough rent to cover the mortgage payment from day one. Your credit should clear 680 and you can wait a month to close.
Pick hard money when you're flipping properties, need to close in days, or the place needs major work before it's rentable. You must have a clear exit — either a sale or refinance into DSCR once renovations finish. Don't use hard money for long holds. The rate will bleed you dry.
Yes, that's the standard play. Finish rehab, get tenants placed, then refinance into DSCR for long-term hold at lower rates.
Hard money lenders care less about credit — some approve at 580. DSCR typically requires 680+ for competitive rates.
Both fund 2-4 unit buildings. DSCR handles stabilized multifamily easily. Hard money works for distressed multi-units needing major work.
DSCR typically needs 20-25% down. Hard money ranges from 10-30% depending on after-repair value and exit strategy.
You can, but it's expensive for long holds. Only makes sense if you can't qualify for DSCR yet or need extremely fast closing.