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in Livingston, CA
Livingston investors often need financing that doesn't rely on W-2 income or perfect credit. Both DSCR and hard money loans skip traditional employment verification, but they serve completely different purposes.
DSCR loans work for buy-and-hold rental strategies with long-term financing. Hard money suits fix-and-flip projects or bridge situations where speed matters more than rate.
DSCR loans approve you based on rental income alone. If the property's rent covers the mortgage payment by enough margin (typically 1.0x to 1.25x), you qualify regardless of your job or tax returns.
Rates run 1-2% above conventional mortgages. Terms stretch 30 years with fixed or adjustable options. You need 20-25% down and credit scores above 620 for most programs.
Hard money lenders fund deals in days, not weeks. They care about the property's value and your exit strategy, not your debt-to-income ratio or employment history.
Expect rates between 8-15% with terms of 6-24 months. Points range from 2-5% of the loan amount. These loans cost more because they're designed for short holds, not permanent financing.
DSCR loans require the property to already generate rental income or have a signed lease in place. Hard money works on vacant properties, major rehabs, or anything you plan to stabilize quickly.
The cost gap is massive. DSCR might run 7.5% with no points. Hard money could hit 12% plus 4 points upfront. But hard money closes in a week when you need to lock up a distressed property in Livingston's agricultural investor market.
Use DSCR when you're buying a rental property you plan to hold long-term. It works for single-family homes, small multifamily units, or even converted agricultural properties in Livingston that already rent or will immediately.
Choose hard money for fix-and-flip projects or bridge loans while you stabilize a property. If you're buying a distressed home near downtown Livingston to renovate and either sell or refinance into permanent financing, hard money gets you in fast.
Yes, this is a common strategy. You use hard money to buy and renovate, then refinance into a DSCR loan once the property is rented and stabilized.
Hard money is easier because approval focuses on property value and your plan, not credit scores or rental income ratios. DSCR has stricter underwriting standards.
DSCR works great for 2-4 unit properties and sometimes larger. Hard money lenders vary but many cap at four units or require higher rates for multifamily.
Most lenders offer extensions for additional fees and points. Rates vary by borrower profile and market conditions, so negotiate extension terms upfront.
Some DSCR lenders allow short-term rental income for qualification. You'll need documented rental history or market rent analysis showing consistent cash flow.