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in La Habra, CA
Both loans skip personal income verification. That's where the similarities end.
La Habra investors use these tools for very different strategies. Knowing which fits your deal saves time and money.
DSCR loans qualify based on the rental property's income. If rent covers the mortgage, you can get approved.
These are 30-year loans. Rates vary by borrower profile and market conditions, but they offer stable, long-term financing for buy-and-hold investors.
Hard money lenders care about the property value, not you. Approval is fast — often in days, not weeks.
Terms are short, typically 6 to 24 months. These loans are built for acquisitions, fix-and-flips, and bridge situations.
Local decision guide
Use this comparison to weigh DSCR Loans and Hard Money Loans through local payment fit, eligibility, documentation, and timing before choosing a path in La Habra.
Both loans skip personal income verification. That's where the similarities end.
La Habra investors use these tools for very different strategies. Knowing which fits your deal saves time and money.
DSCR loans qualify based on the rental property's income. If rent covers the mortgage, you can get approved.
DSCR loans carry lower rates and longer terms. Hard money costs more but moves faster — that tradeoff is real.
DSCR needs a stable rental income story. Hard money needs equity in the deal. Different underwriting, different investor profiles.
Buying a La Habra rental and holding it? DSCR. Flipping a distressed property and need to close fast? Hard money.
Some investors use both. Hard money to acquire and renovate, then refinance into a DSCR loan once the property cash flows.
No. DSCR loans are for properties you rent out long-term. Flips need short-term financing like hard money.
Many hard money deals close in 5–10 business days. Speed depends on the lender and how clean the deal is.
Most DSCR lenders want at least a 620 score. Some go lower, but rates get worse fast below that threshold.
Most lenders want a ratio of 1.0 or higher. That means rent at least covers the full mortgage payment.
Yes — this is common. Once your property rents and cash flows, a DSCR refi replaces the short-term hard money debt.
DSCR loans typically require 20–25% down. Hard money lenders focus on loan-to-value and may vary widely.