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in Signal Hill, CA
Signal Hill investors face a choice between two non-QM options that ignore W-2 income. DSCR loans use rental cash flow to qualify. Hard money loans ignore income entirely and fund based on property value.
Both work in this compact city where single-family rentals and small multifamily properties dominate. The right choice depends on whether you're holding long-term or flipping fast.
DSCR loans work for Signal Hill landlords planning to rent the property. Your approval hinges on one number: monthly rent divided by monthly debt. A ratio above 1.0 means the property pays for itself.
Rates typically run 1-2% higher than conventional loans. You'll need 20-25% down and credit above 620. Terms stretch 30 years, making this a buy-and-hold financing tool, not a flip strategy.
Hard money lenders fund based on after-repair value. They'll lend 70-80% of what the property will be worth post-renovation. Approval happens in 3-5 days because underwriting focuses on the asset, not your financial profile.
These loans cost 9-12% interest plus 2-4 points upfront. Terms max out at 12-24 months. You're paying for speed and flexibility on distressed Signal Hill properties that can't get traditional financing.
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 Signal Hill.
Signal Hill investors face a choice between two non-QM options that ignore W-2 income. DSCR loans use rental cash flow to qualify. Hard money loans ignore income entirely and fund based on property value.
Both work in this compact city where single-family rentals and small multifamily properties dominate. The right choice depends on whether you're holding long-term or flipping fast.
DSCR loans work for Signal Hill landlords planning to rent the property. Your approval hinges on one number: monthly rent divided by monthly debt. A ratio above 1.0 means the property pays for itself.
Timeline separates these loans. DSCR takes 3-4 weeks to close because lenders need appraisals and rent analysis. Hard money closes in days because they're betting on equity, not cash flow.
Cost structure flips too. DSCR loans charge lower rates but require the property to generate income immediately. Hard money ignores rent entirely but hits you with double-digit rates and origination points that eat into renovation budgets.
Use DSCR when you're buying a Signal Hill rental that's already tenant-ready or needs minor cosmetic work. The property must cash flow from day one. This works for turnkey single-family homes or duplexes near California State Long Beach students.
Pick hard money when you're buying distressed property or competing in fast-moving situations. Speed matters more than cost on Signal Hill's limited inventory. You'll refinance into DSCR or conventional once renovations finish and the property starts producing rent.
No. DSCR loans require rental income to qualify, so the property must be tenant-occupied. Flips generate no rent during renovation, making DSCR impossible.
Most hard money lenders fund in 3-5 business days. Some can close in 48 hours if you have a clean title and strong equity position.
DSCR costs less despite the longer hold. Hard money's 10%+ rates and points typically exceed DSCR's total cost within 6-8 months.
Yes. DSCR lenders fund 2-4 unit buildings if the income works. Hard money focuses on equity, so unit count matters less than after-repair value.
That's the standard exit strategy. Renovate with hard money, lease the property, then refinance into long-term DSCR financing once rent stabilizes.