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in Larkspur, CA
Larkspur investors face a choice between DSCR loans for cash-flowing rentals and hard money for quick acquisitions. Both skip traditional income verification, but they serve completely different strategies.
DSCR loans work for investors holding properties long-term. Hard money fits fix-and-flip projects or quick purchases where speed matters more than rate.
DSCR loans qualify you based on rental income, not your tax returns. If the property generates 1.0x to 1.25x its monthly debt payment, you can get approved regardless of personal income.
These are 30-year fixed mortgages with rates typically 1-2% above conventional. You'll need 20-25% down and a 620+ credit score, but your existing rental portfolio doesn't count against you.
DSCR works best for investors buying turnkey rentals in Larkspur or adding to an existing portfolio. The property has to be rent-ready or close to it at closing.
Hard money loans fund in days, not weeks. Lenders care about the property's after-repair value and your exit strategy, not your credit score or rental projections.
Expect rates between 9-14% with terms of 6-24 months. Points run 2-4% upfront, and you'll put down 10-30% depending on the deal and your experience.
These loans fit major renovations, competitive bidding situations, or properties that can't qualify for traditional financing yet. You need a clear refinance or sale plan before the term ends.
Rate spread tells the story: DSCR loans run 7-9%, hard money hits 10-14%. DSCR terms last 30 years, hard money maxes out around two years.
DSCR lenders want stable rental income from day one. Hard money lenders fund distressed properties and major rehabs that won't generate income until you finish the work.
Closing speed separates them too. DSCR takes 25-35 days like a normal mortgage. Hard money can close in a week if you have documents ready and the deal makes sense.
Choose DSCR if you're buying a rental that's already generating income or will within 30 days. You want to hold the property for years and you need predictable monthly payments.
Pick hard money when you're flipping a fixer in Larkspur or competing against cash offers. You have renovation experience and a clear plan to sell or refinance within 12 months.
Most investors use both at different times. Hard money gets you into the deal fast, then you refinance to DSCR once renovations finish and you place tenants.
Yes, most investors do exactly that. You buy and renovate with hard money, then refinance to a DSCR loan once the property is rent-ready and generating income.
Hard money closes in 5-10 days versus 25-35 for DSCR. If you're competing against cash buyers, hard money gives you similar speed with less capital down.
Yes. DSCR qualifies on rental income, hard money on property value. Neither requires W-2s or tax returns showing personal income.
DSCR typically requires 620+ credit. Hard money lenders care more about the deal and may approve scores in the 500s if equity and exit strategy are strong.
Some DSCR lenders allow minor repairs after closing. Major renovations require hard money since DSCR underwriting assumes immediate rental income.