Loading
in Sausalito, CA
Sausalito investors face a choice between two income-ignoring loan types. DSCR loans work for cash-flowing rentals, while hard money finances quick acquisitions and rehabs.
Both skip your W-2s and tax returns. The difference is timeline and purpose. DSCR gives you 30-year financing for stable rentals. Hard money gives you 6-12 months to fix and flip or refinance.
Marin County properties command premium rents and values. That makes loan choice critical—pick wrong and you'll overpay by thousands monthly or miss competitive deals entirely.
DSCR loans underwrite your property, not your paystubs. If the monthly rent covers the mortgage payment by 1.0x to 1.25x, you qualify. We pull bank statements to verify reserves, not income.
Rates run 7.5-9.5% depending on credit and down payment. You need 20-25% down and 680+ credit. Closing takes 21-30 days, same timeline as conventional mortgages.
These work for Sausalito investors holding long-term. You lock a 30-year fixed rate and treat it like any permanent mortgage. Properties must be habitable and rented or rent-ready at closing.
Hard money lenders fund based on after-repair value. They'll loan 65-75% of what the property will be worth after renovations. Your credit score barely matters—some lenders approve with 580 scores.
Expect 9-14% interest plus 2-4 points upfront. Terms run 6-12 months, sometimes 24. You make interest-only payments while renovating, then sell or refinance to permanent financing.
Speed is the selling point. We close hard money in 5-10 days when you need to beat cash offers. These loans finance teardowns, major rehabs, and properties DSCR lenders won't touch until repairs are done.
Timeline separates these loans. DSCR is permanent financing you keep for years. Hard money is bridge financing you exit in months. Using hard money for a buy-and-hold bleeds cash. Using DSCR for a flip takes too long.
Property condition creates the second split. DSCR requires rent-ready properties that pass appraisal. Hard money funds properties in any condition—we've closed on Sausalito homes needing full gut renovations.
Cost structure differs completely. DSCR has lower rates but needs full appraisals and standard underwriting. Hard money charges more but skips most paperwork and funds in days. One optimizes for monthly cost, the other for speed and flexibility.
Choose DSCR if you're buying a rental property to hold. The monthly payment stays manageable and the 30-year term gives you predictability. You need strong rent-to-payment ratio and a property ready to lease immediately.
Choose hard money if you're flipping, doing major renovations, or need to close fast. Properties in any condition qualify. You'll pay more monthly but only for months, not years. Most investors refinance to DSCR once renovations finish.
Sausalito deals often start with hard money and convert to DSCR. You buy a fixer with hard money, renovate for 4-6 months, then refinance to DSCR for permanent rental financing. That two-step approach combines speed with long-term affordability.
Minor cosmetic work is fine, but the property must be habitable and pass appraisal. Major systems like roof, foundation, and HVAC need to be functional.
Yes, if you provide clear title and basic paperwork upfront. We've closed Sausalito hard money deals in 7 days when investors needed to compete with cash buyers.
Hard money costs less over 6 months despite higher rates. You avoid DSCR's full appraisal and underwriting costs, and you're only paying interest for half a year.
Yes, but you need market rent documentation from the appraiser. The underwriter uses projected rent, not actual lease payments, to calculate debt coverage.
DSCR typically requires 680 minimum, though some lenders go to 660. Hard money approves with 580-600, and some asset-based lenders skip credit entirely.