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in Belvedere, CA
Belvedere investors face a choice between DSCR loans and hard money. Both skip personal income verification, but they serve completely different strategies.
DSCR loans work for cash-flowing rentals you plan to hold. Hard money is for quick flips or properties needing major work before they qualify for traditional financing.
DSCR loans qualify you based on rental income, not paystubs. Lenders want the property's rent to cover 100-125% of the mortgage payment.
You get 30-year fixed rates similar to conventional loans. Expect 20-25% down and rates typically 1-2% higher than owner-occupied mortgages.
These work for Belvedere investment properties already rented or immediately rentable. No renovations needed—the property must appraise and generate income from day one.
Hard money lenders fund based on the property's after-repair value, not current condition. They'll lend on fixer-uppers that banks won't touch.
Expect 8-12% interest rates and 1-3 year terms. You typically put down 20-30% and pay 2-4 points upfront.
Speed is the advantage—closings happen in 7-14 days versus 30-45 for DSCR. Use this for competitive Marin bidding situations or properties needing immediate work before they qualify for permanent financing.
DSCR gives you long-term financing at reasonable rates. Hard money gives you fast cash at high rates with a clock ticking.
DSCR requires stable rental income and an appraisal showing the property is move-in ready. Hard money only cares about equity and your renovation budget.
On a $2M Belvedere property, DSCR might cost 7.5% over 30 years. Hard money runs 10% for 12 months—cheaper monthly, but you must refinance or sell within a year.
Pick DSCR if you're buying a Belvedere rental that's already generating income or needs minor cosmetic work. You want to hold it long-term and the numbers work based on market rents.
Choose hard money when you're flipping, doing major renovations, or need to close fast on a competitive property. You have a clear exit plan—either refinance to DSCR or conventional once renovations finish, or sell outright.
Most Marin investors use hard money to acquire and renovate, then refinance to DSCR for the hold period. The two loans complement each other in a complete investment strategy.
No. DSCR lenders require the property to appraise as rent-ready and generate immediate income. You'd need hard money first, complete renovations, then refinance to DSCR.
Most lenders want 1.0 or higher—meaning rent covers 100% of the mortgage payment. Some go down to 0.75 DSCR with larger down payments and strong reserves.
7-14 days is standard. Some lenders close in 5 days if the property appraisal and title work move quickly.
Less than DSCR lenders. Most want 600+ credit, but they focus primarily on the property's value and your equity position.
Yes. That's a common strategy—use hard money to buy and renovate, then refinance to DSCR once the property generates rental income and appraises higher.