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in Los Alamitos, CA
Both loans skip personal income verification. That's where the similarity ends.
Los Alamitos investors use DSCR for long-term holds and hard money to move fast on deals. Knowing which fits your exit strategy saves time and money.
DSCR loans qualify you based on the property's rent, not your W-2. If the rent covers the mortgage, you can get approved.
These are 30-year fixed products. Rates vary by borrower profile and market conditions. Most lenders want a DSCR ratio of 1.0 or higher — meaning rent at least matches the payment.
Hard money lenders care about the asset, not you. They lend based on the property's value — current or after-repair.
Terms run 6 to 24 months. Rates are higher than DSCR. The trade-off is speed — closings in days, not weeks.
DSCR loans are permanent financing. Hard money is a bridge. You wouldn't use hard money to hold a rental for five years — the cost would kill your returns.
Hard money rates run significantly higher than DSCR rates. That's fine for a 6-month flip. It's not fine for a buy-and-hold in Los Alamitos.
Buying a rental and holding it? Use DSCR. The math works when rent covers the payment and you want a fixed rate for decades.
Flipping a distressed property or bridging to a refinance? Hard money is the right tool. Just have your exit strategy locked before you close.
Yes — this is a common strategy. Buy and rehab with hard money, then refinance into a DSCR once the property is stabilized and rented.
Most DSCR lenders in our network want a 620 minimum. Some go lower with stronger property cash flow.
Some do, some don't. Hard money underwriting centers on the asset. Credit is secondary to property value and your exit plan.
Hard money wins on speed — closings in days are possible. DSCR loans typically take 2–4 weeks.
Some lenders accept market rent appraisals for vacant properties. Not all do — ask us which lenders allow this.
Yes. We work with 200+ wholesale lenders and have active options for both loan types in Orange County.