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in San Juan Capistrano, CA
Both loans skip personal income verification. That's where the similarity ends.
San Juan Capistrano attracts buy-and-hold investors and fix-and-flip operators alike. Picking the wrong loan type costs you money.
DSCR loans qualify you based on rental income. If the rent covers the mortgage, you're in business.
These are 30-year loans. Rates are higher than conventional, but you get stable, long-term financing. Rates vary by borrower profile and market conditions.
Hard money lenders care about the property, not your tax returns. Loan approval is based on asset value.
Terms run 6 to 24 months. These loans are built for speed — closings in days, not weeks.
DSCR loans are for stabilized rentals with steady tenants. Hard money is for properties that aren't rent-ready yet.
Hard money rates run significantly higher. You pay for speed and flexibility. Exit strategy matters — most borrowers refinance into a DSCR loan after renovation.
Buying a turnkey rental in San Juan Capistrano? DSCR is your loan. It locks in long-term financing without touching your tax returns.
Buying a distressed property to flip or rehab? Use hard money to close fast, renovate, then refinance or sell.
Yes — that's a common strategy. Renovate with hard money, stabilize the rental, then refinance into a 30-year DSCR loan.
Most lenders want 620 at minimum. Better scores get better pricing. Hard money lenders are more flexible on credit.
Many hard money lenders close in 5 to 10 days. That speed is the main reason investors use them on competitive deals.
Some lenders accept Airbnb income projections. Others require long-term lease history. It depends on the lender.
Most lenders require a ratio of 1.0 or higher. That means rental income equals or exceeds the monthly mortgage payment.
DSCR loans carry lower rates. Hard money costs more because of short terms and speed. Rates vary by borrower profile and market conditions.