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in Los Banos, CA
Los Banos investors face a choice between DSCR loans for rental holds and hard money for quick flips. Both skip traditional income verification, but they serve different timelines and exit strategies.
DSCR loans fund based on property cash flow with longer terms. Hard money lends against asset value with fast closings but higher costs.
DSCR loans qualify you based on rental income divided by mortgage payment. If that ratio hits 1.0 or higher, you can get approved without proving personal income.
Terms run 30 years with rates typically 1-2% above conventional mortgages. You need 20-25% down and decent credit, usually 620 minimum.
These work for investors building rental portfolios in Los Banos. Property cash flow matters more than your tax returns or pay stubs.
Hard money loans fund in days based on property value and your equity stake. Lenders care about the asset and your exit plan, not your income or credit score.
Terms run 6-24 months with rates from 8-15% plus points. You typically need 25-35% down and clear renovation or resale timelines.
These finance fix-and-flip projects or bridge gaps between purchases. Speed and flexibility cost more than traditional financing.
DSCR loans cost less but take longer and require stable rental income. Hard money closes faster but charges higher rates for shorter terms.
DSCR lenders underwrite the property's ability to cover payments long-term. Hard money lenders focus on equity protection and quick exit paths.
In Los Banos, DSCR works for turnkey rentals or stabilized properties. Hard money fits distressed homes needing rehab before they can qualify for permanent financing.
Choose DSCR if you're buying rental property to hold and collect cash flow. The lower rate saves thousands over 30 years, and you refinance once the property stabilizes.
Pick hard money if you're flipping a distressed Los Banos property or need to close in under two weeks. Pay the premium for speed and flexibility, then exit within a year.
Many investors use both: hard money to acquire and renovate, then refinance into DSCR once the property generates rental income. That approach maximizes speed upfront and minimizes cost long-term.
DSCR typically needs 620 minimum credit. Hard money lenders care more about equity and exit strategy than credit scores.
Hard money closes in 5-10 days. DSCR takes 30-45 days due to rental income verification and standard underwriting.
Yes. DSCR needs 20-25% down, hard money typically requires 25-35% depending on property condition and experience.
Absolutely. Many investors use hard money for acquisition and rehab, then refinance to DSCR once the property produces rental income.
Hard money costs more in rate but less in time. Run the numbers: DSCR saves on interest but may miss market timing.