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in Corte Madera, CA
Corte Madera investor properties require different financing strategies depending on your timeline and exit plan. DSCR loans work for buy-and-hold rentals while hard money funds quick acquisitions and rehabs.
Both skip traditional income verification, but they serve opposite goals. DSCR gives you 30-year terms at lower rates. Hard money gets you funded in days with higher costs and short payoff windows.
Most Marin investors use hard money to acquire and renovate, then refinance into DSCR for long-term rental income. Understanding when to deploy each loan type separates profitable deals from expensive mistakes.
DSCR loans qualify you based solely on the property's rental income divided by its monthly debt payment. You need a ratio above 1.0, meaning rent covers the mortgage. No W-2s, no tax returns, no employment verification.
Rates currently run 7.5% to 9.5% depending on credit score and down payment. You need 20-25% down on investment properties. Terms stretch to 30 years fixed, giving you predictable payments and stable cash flow.
Approval takes 21-30 days with a full appraisal and title work. Lenders want 680+ credit and 6-12 months reserves. This structure works perfectly for Corte Madera rentals you plan to hold for years.
Hard money lenders fund based on the property's current and after-repair value, not your income or credit. They'll lend 65-75% of the purchase price or ARV, whichever is lower. Credit scores matter less than your exit strategy.
Rates run 9% to 14% with 2-4 points upfront. Terms max out at 12-24 months because these are bridge loans, not permanent financing. You pay interest-only monthly and the full principal at maturity.
Funding happens in 5-10 days once you're approved. Minimal paperwork, no appraisal delays, and lenders focus on the deal itself. This speed matters when competing for Marin properties that move fast.
Speed separates these products first. Hard money closes in a week while DSCR takes a month. Rate differences reflect this: you pay 2-5% more for hard money's speed and flexibility.
Term length changes everything about monthly costs. DSCR spreads payments over 30 years, lowering your monthly burn. Hard money keeps terms under 2 years, requiring a clear refinance or sale plan.
Down payment structures differ significantly. DSCR needs 20-25% cash from you. Hard money often covers rehab costs beyond purchase, letting you fund an entire flip with one loan if the numbers work.
Use hard money when you're buying a fixer in Corte Madera and need to close fast or fund renovations. It's the right call for flips, major rehabs, or beating cash offers with quick closes. Just know your exit before you sign.
Choose DSCR when you're buying a rental property you plan to hold long-term. It makes sense for turnkey rentals or properties needing minor work. The lower rate and 30-year term let you actually cash flow instead of bleeding monthly.
Many investors chain these together: hard money to buy and renovate, then DSCR refinance once the property's rented and stabilized. This two-step approach maximizes leverage while minimizing long-term costs on Marin County deals.
Not during construction. DSCR requires a rented or rent-ready property with provable income. Use hard money for the rehab, then refinance to DSCR once it's leased.
You'll face extension fees of 1-2 points plus higher rates. Most lenders allow one extension, but some force a sale or foreclosure at maturity.
Yes. Neither requires U.S. citizenship or permanent residency. Hard money cares only about the property. DSCR needs valid ID and proof of funds.
Hard money rarely penalizes early payoff since lenders expect quick exits. DSCR typically charges 6-24 months prepayment penalties depending on your rate lock.
No, you can't stack them. But you can pay off hard money with a DSCR refinance once the property is renovated and generating rental income.