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in Ross, CA
Ross investment properties command premium prices. Choosing the wrong financing costs you thousands in rate spread and fees.
DSCR loans work for buy-and-hold investors who want stable rental income. Hard money suits fix-and-flip projects or bridge financing when you need fast closings.
Both skip W-2 income verification. But the similarities end there—they serve completely different investment timelines and exit strategies.
DSCR loans qualify you based on rental income only. The property must generate enough rent to cover the mortgage—typically 1.0x to 1.25x debt service.
Terms run 30 years at fixed rates. You're looking at rates 1.5 to 3 points above conventional, depending on credit and down payment.
Minimum credit score is 620, though 680+ gets better pricing. Expect 20% to 25% down on investment properties in Ross.
These loans close in 21 to 30 days. Perfect for long-term rental strategies where monthly cash flow matters more than speed.
Hard money lenders fund based on property value, not your financials. They care about the asset and your exit plan—that's it.
Terms run 6 to 24 months with rates between 8% and 12%. Points at closing add another 2 to 4 points to your upfront costs.
Credit matters less than equity. Many lenders approve with 580 scores if you're putting 30% down and have a solid renovation budget.
Closings happen in 5 to 10 days. You're paying for speed and flexibility when traditional financing won't work or takes too long.
Rate spread tells the story. DSCR runs 6% to 8% for 30 years. Hard money hits 8% to 12% but only for months, not decades.
DSCR requires the property to cash flow from day one. Hard money doesn't care about current rent—just after-repair value and your flip timeline.
DSCR closes in three weeks with full appraisals and title work. Hard money closes in days with minimal underwriting, often funding on broker price opinions instead of full appraisals.
Exit strategies differ completely. DSCR loans assume you're holding for years, building equity through appreciation and paydown. Hard money assumes you're selling or refinancing within a year.
Pick DSCR if you're buying a Ross rental to hold long-term. The property needs to generate enough rent to qualify, but you'll lock in fixed rates and predictable payments.
Pick hard money if you're flipping or need bridge financing while repositioning a property. You're paying for speed and approval flexibility when DSCR underwriting won't work.
Ross properties often need renovation before they'll qualify for DSCR lending. Hard money finances the purchase and rehab, then you refinance into DSCR once the property is rent-ready.
Don't use hard money for long holds. The rate and point structure will destroy your returns if you carry it past 12 months.
No. DSCR requires a tenant and rent roll at closing. Use hard money for flips, then refinance to DSCR if you decide to hold the property long-term.
No. Hard money is asset-based lending. They underwrite the property value and your equity position, not your W-2 or tax returns.
Hard money only. DSCR lenders won't fund vacant properties because there's no rental income to calculate debt service coverage.
No. Hard money maxes out at 24 months, typically 12. If you need long-term financing, refinance into DSCR once the property stabilizes.
DSCR loans. Hard money charges 2-4 points upfront plus higher rates. DSCR has standard closing costs similar to conventional loans.
Yes. DSCR requires 20-25% down. Hard money typically wants 25-30% down, sometimes more depending on the project and your experience.