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in Larkspur, CA
Larkspur investors have two non-QM tools worth knowing. DSCR loans and hard money loans solve different problems.
Neither requires W-2 income or tax returns. But they serve very different investment strategies.
DSCR loans qualify you based on rental income, not personal income. The property pays for itself — that's the whole model.
Lenders look at the debt service coverage ratio. A ratio above 1.0 means rent covers the mortgage. Most lenders want 1.1 or higher.
Hard money loans are short-term and asset-based. The lender cares about the property's value — not your credit history.
These loans close fast. That matters in Marin County, where competitive offers need quick execution.
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 Larkspur.
Larkspur investors have two non-QM tools worth knowing. DSCR loans and hard money loans solve different problems.
Neither requires W-2 income or tax returns. But they serve very different investment strategies.
DSCR loans qualify you based on rental income, not personal income. The property pays for itself — that's the whole model.
DSCR loans carry lower rates and longer terms. Hard money loans cost more but move faster and ask fewer questions.
Credit score matters more on DSCR — most lenders want 660 or above. Hard money lenders focus on loan-to-value, not your score.
Buying a Larkspur rental and holding it? DSCR is the right tool. It gives you a permanent loan the rental income supports.
Buying a distressed property to renovate and sell? Hard money gets you in fast and funds the project. Refinance or sell before the term ends.
No. DSCR loans require stable rental income. Fix-and-flip projects need hard money or a short-term bridge loan.
Some do a basic check, but it rarely drives the decision. Loan-to-value on the property is what matters most.
Most want 1.1 or higher. That means rent exceeds the mortgage payment. Some lenders allow 1.0 with a higher down payment.
Yes — this is a common exit strategy. Once the property is stabilized with rental income, a DSCR refi replaces the hard money.
Hard money wins on speed — often 5 to 10 days. DSCR loans typically take 3 to 4 weeks, similar to conventional loans.
Neither does. DSCR uses rental income. Hard money uses property value. Your tax returns stay in the drawer.