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in Whittier, CA
Whittier investors face a choice between two asset-based loans. DSCR loans work for rental properties you'll hold. Hard money works for flips and quick acquisitions.
Both skip W-2 income verification. DSCR qualifies on rent rolls. Hard money qualifies on property value and your exit plan.
DSCR loans let you finance based on rental income potential. If the property's rent covers 1.0-1.25 times the mortgage payment, you qualify. Your tax returns and pay stubs don't matter.
These are 30-year mortgages with rates typically 1-2% above conventional. You need 20-25% down. Approval takes 3-4 weeks, similar to traditional financing timelines.
Hard money loans fund in days, not weeks. Lenders care about property value and your equity position. Most require 30-40% down and charge 9-14% rates with 2-4 points upfront.
Terms run 6-24 months. You need a clear exit: sell after rehab or refinance into permanent financing. These work for distressed properties DSCR lenders won't touch.
Cost separates these products. DSCR rates run 7-9%. Hard money runs 10-14% with points. On a $500K Whittier property, hard money costs $4,000-$8,000 just to close.
Timeline matters more than cost for some deals. DSCR takes a month. Hard money closes in a week. If you're competing on a foreclosure or estate sale, hard money keeps you in the game.
Loan term defines your strategy. DSCR gives you 30 years to rent and refinance when rates drop. Hard money forces a 12-month clock—you flip or refinance before the balloon payment hits.
Choose DSCR when you're buying a rentable property in Whittier and plan to hold it. The property needs working systems and rent-ready condition. You'll save thousands in interest over a flip loan.
Choose hard money when speed matters or the property needs major work. Buying a distressed home near Greenleaf? Competing with cash offers in Uptown? Hard money matches that speed.
Some investors use both. Hard money funds the purchase and rehab. DSCR refinances you out once the property is rented and stabilized. You pay premium rates for six months, then drop into long-term financing.
Most DSCR lenders require the property to be rent-ready at closing. Major repairs need to be done first. Some lenders allow minor cosmetic work if the property is still habitable.
You'll pay extension fees—typically 1-2 points per quarter. Some lenders force a sale or foreclose. Always have a backup refinance plan before taking hard money.
Hard money cares less about credit—some approve 550+ scores. DSCR typically needs 660-680 minimum. Both care more about down payment and property value than credit history.
Yes. Lenders evaluate each property separately. You could carry three hard money loans and two DSCR loans if each property qualifies independently.
DSCR requires rental income to qualify. Hard money works for any property—flip projects, land development, or future rentals. You just need equity and an exit plan.