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in Vernon, CA
Vernon sits at the heart of LA's industrial core — mostly commercial zoning, limited residential. Most deals here involve mixed-use properties or investment parcels tied to nearby rental markets in Huntington Park and South Gate.
DSCR and hard money both serve investors, but they solve different problems. DSCR works for stabilized rentals with tenant income. Hard money closes fast on fix-and-flip or bridge situations where rental income doesn't exist yet.
DSCR loans qualify you on monthly rent, not W-2 income. Lenders want rent to cover 1.0x to 1.25x the mortgage payment. You'll need a 620+ credit score and 15% to 25% down depending on property type.
These loans close in 30 to 45 days. Rates run 1% to 2% above conventional — as of February 2026, expect mid-7% to mid-8% range. Terms go up to 30 years, so you can hold long-term without refinancing.
Hard money lenders fund based on the property's after-repair value, not your income or credit. They'll lend 65% to 75% of ARV. Most deals close in 7 to 14 days — critical when you're competing with cash buyers or need to start rehab fast.
Rates sit between 9% and 12%. Terms run 6 to 24 months, so this is bridge financing. You'll pay points upfront — typically 2 to 5 points at closing. The goal is to flip or refinance into a DSCR or conventional loan once the property stabilizes.
Speed separates these two. Hard money closes in a week. DSCR takes a month. If you're in a bidding war or a time-sensitive deal, hard money wins. If you've got time and want lower carrying costs, DSCR is the move.
Cost structure also differs. DSCR has lower rates but longer underwriting. Hard money charges higher rates and upfront points, but you're only paying that for 12 to 18 months. DSCR is for buy-and-hold. Hard money is for fix-and-flip or bridge scenarios.
Use DSCR if you're buying a turnkey rental or a property that's already occupied. You'll need rent in place to hit the debt coverage ratio. If you plan to hold for years, the 30-year term keeps payments stable.
Use hard money if you're buying a distressed property, doing a heavy rehab, or need to close before a tenant moves in. The high rate only matters for the 9 to 12 months you're in construction. Then you refinance into DSCR or conventional and lock in long-term financing.
Not until it's habitable and rented. DSCR requires tenant income to qualify. If you're mid-rehab, hard money is your only option until you place a tenant and stabilize the property.
Most investors refinance into DSCR or conventional once rehab is done and the property appraises at full ARV. Some flip the property outright and pay off the loan at closing.
Yes, but most DSCR lenders cap at 1-4 units. For larger commercial, you're looking at commercial real estate loans. Hard money also funds commercial deals based on ARV.
Most hard money lenders don't have a minimum credit score. They care about the deal's profit margin and your experience. Expect higher points if credit is under 600.
Hard money can lend up to 75% of ARV, which may exceed what DSCR offers on the same property. But you're paying for that flexibility with higher rates and points.