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in Ukiah, CA
Ukiah investors shopping rental properties face a choice between two non-QM options. DSCR loans qualify you on rental income, while hard money approves based on the property's value.
Most fix-and-flip projects in Mendocino County run on hard money. Buy-and-hold landlords lean toward DSCR loans for longer holds and lower rates.
DSCR loans check if the property generates enough rent to cover the mortgage payment. You need a ratio above 1.0 in most cases—meaning rent exceeds the monthly payment.
Terms run 30 years with rates 1-2% above conventional mortgages. Expect 20-25% down and no personal income verification required.
Hard money loans fund in days, not weeks. Lenders approve based on after-repair value of the Ukiah property you're buying or renovating.
Terms last 6-24 months with rates between 8-12%. Points range from 2-5% upfront. You pay for speed and flexibility, not long-term affordability.
DSCR loans cost less but take 30-45 days to close. Hard money costs more but closes in under a week when you need to move fast on a Mendocino property.
DSCR works for stabilized rentals throwing off income today. Hard money finances distressed properties that won't appraise or rent in current condition.
Choose DSCR when you're buying a turnkey Ukiah rental that's already leased or rent-ready. The property income qualifies you and you hold for years.
Pick hard money when you're flipping, doing major rehab, or need to close before another buyer beats you. Refinance to DSCR or conventional once the project is stabilized.
Yes, most investors do exactly that. Hard money gets you in fast, DSCR refinance drops your rate once the property is rent-ready and stabilized.
Hard money closes in 3-7 days. DSCR takes 30-45 days because lenders order full appraisals and verify rent comps for income calculations.
DSCR lenders want 660+ credit scores typically. Hard money approves down to 600 or lower since they focus on property value over borrower profile.
DSCR asks for 20-25% down on stabilized rentals. Hard money wants 25-35% because they're funding higher-risk distressed properties or flips.
Yes, neither loan checks W-2s or tax returns. DSCR qualifies on property rent, hard money qualifies on property value after repairs.