Loading
in Stanton, CA
Both loans skip your W-2. That's where the similarity ends.
DSCR loans are built for buy-and-hold rental investors. Hard money is built for speed and short-term plays. Stanton's rental market rewards knowing the difference.
DSCR loans qualify you based on the rental income a property generates. If the rent covers the mortgage, you're in business.
These are 30-year fixed products. They work like conventional loans but underwrite the property, not you. No tax returns, no employment history.
Hard money lenders care about one thing: the property's value. Your credit score is almost irrelevant.
These loans close fast — sometimes in days. Terms run 6 to 24 months. Rates are high, but speed is the product you're buying.
DSCR rates are higher than conventional but far lower than hard money. Hard money can run 10–13% or more. Rates vary by borrower profile and market conditions.
Hard money has almost no income or credit floor. DSCR has standards. If your credit is under 620, hard money may be your only non-cash option.
Buying a Stanton rental you plan to hold? DSCR is the move. It gives you permanent financing tied to what the property earns.
Flipping or bridging to a long-term loan? Use hard money to move fast, then refi into DSCR once the property stabilizes.
Yes — this is a common strategy. Stabilize the property and show rental income, then refi into DSCR for long-term hold.
Most DSCR lenders want 660 or higher. A few go down to 620, but pricing gets worse fast below that threshold.
Experienced hard money lenders can close in 5–10 business days. Some go faster on clean deals with clear title.
No personal income docs. Lenders use a rent schedule or lease to project the property's cash flow instead.
If you're holding it as a rental, DSCR wins. If it needs major work before it can be rented, start with hard money.
Most DSCR loans carry a prepayment penalty — typically 3 to 5 years. Factor this in before planning a quick exit.