Loading
in Mammoth Lakes, CA
Mammoth Lakes vacation rentals and fix-and-flip projects need specialized financing. DSCR loans fund based on rental income, while hard money focuses on the property's value.
Both skip traditional income verification, but they serve different investment strategies. One suits long-term rental holds, the other works for quick renovations and resales.
DSCR loans qualify you based on rental income divided by the mortgage payment. Most lenders want a ratio of 1.0 or higher, meaning rent covers the full payment.
Terms stretch 30 years with rates typically 1-3% above conventional. You need 20-25% down and decent credit, usually 640 or higher for best pricing.
These work for vacation rentals already generating income or properties with strong rental comps. No tax returns or pay stubs required for approval.
Hard money lenders fund based on after-repair value, not current condition. They'll lend 65-75% of what the property will be worth after renovations.
Terms run 6-24 months with rates from 8-15%. Points range from 2-5% upfront, and you'll need an exit strategy before funding.
Credit matters less than the deal itself. Lenders focus on your renovation plan, contractor experience, and how you'll refinance or sell when the term ends.
DSCR costs less and runs longer, but requires existing rental income. Hard money closes faster and funds renovations, but costs substantially more.
DSCR down payments start at 20%. Hard money requires 25-35% depending on project scope and your experience level.
DSCR suits investors holding properties for years. Hard money fits flips, major renovations, or bridge financing until you can refinance into permanent debt.
Choose DSCR if you're buying a turnkey vacation rental or stabilized property in Mammoth. The lower rate saves thousands over time when you're holding long-term.
Pick hard money when acquiring a fixer or competing against cash buyers. The speed matters more than cost on deals where days count or renovation funding is critical.
Many investors use both: hard money to acquire and renovate, then refinance into DSCR once rental income stabilizes. That strategy captures speed and long-term affordability.
Yes, if rental income covers the payment. Lenders use actual income or rental comps to calculate the debt service coverage ratio.
Most hard money lenders close in 7-14 days. Some can fund in 5 days if the deal is straightforward and appraisal comes back quickly.
DSCR loans cost significantly less, typically 7-9%. Hard money runs 10-15% because it's short-term bridge financing.
Most lenders require 6-12 months of mortgage payments in reserves. Hard money focuses more on exit strategy than liquid assets.
Yes, that's a primary use case. Lenders hold renovation funds in escrow and release them as work completes based on inspection.