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in Rocklin, CA
Rocklin investors choosing between DSCR and hard money loans face a real tradeoff. DSCR loans let you qualify on rental income. Hard money moves fast but costs more upfront.
The conforming limit in Rocklin sits at $832,750 for 2026. Most investment properties here fall below that threshold, which opens DSCR options that hard money lenders might skip. Speed versus cost—that's the core choice.
DSCR loans (Debt Service Coverage Ratio) let you qualify on the property's actual or projected rental income, not your personal W-2s. Lenders look at whether the rent covers the mortgage payment plus taxes, insurance, and HOA.
You'll typically need 20–25% down on a DSCR loan and a credit score around 640 or higher. The rate sits slightly above conforming conventional because the lender relies on tenant income, not your employment. Closing takes 30–45 days.
Hard money loans are asset-based, not income-based. The lender cares about the property value and your exit strategy, not your credit score or tax returns. You can close in 7–14 days.
Hard money costs more: expect 2–4 points in origination fees plus a rate 2–3% above conventional. You'll put 25–35% down. The trade-off is clear—pay more, close faster, skip the underwriting gauntlet.
Speed is the biggest gap. Hard money closes in two weeks; DSCR takes six weeks. If you're bidding on a Rocklin property in a competitive market and need to show proof of funds fast, hard money wins.
Down payment and cost structure differ sharply. DSCR asks for 20–25% down at a near-conventional rate. Hard money wants 25–35% down plus 2–4 points upfront. On a $600,000 purchase, that's a meaningful difference in cash at closing.
Pick DSCR if you're buying a rental in Rocklin with solid rent rolls or a property you can lease out immediately. Your day job income doesn't matter; the property's income does. You have 30–45 days to close and want to minimize total borrowing cost.
Pick hard money if you're flipping a property, need to close in two weeks, or the deal is too unconventional for traditional underwriting. You have the down payment ready and can absorb the higher cost for speed.
Yes. DSCR lenders will use market rent—what a comparable unit in Rocklin would lease for—if you don't have a signed lease. You'll need to show comparable rent data or a property manager's estimate.
No. Hard money lenders care far more about the property value and your down payment than your credit score. A 580 FICO is often acceptable. What matters is proof of funds and a clear exit strategy—sale, refinance, or lease-up.
DSCR typically costs less. The rate is lower and there are no points. Hard money's 2–4 points plus higher rate add up fast. If you hold the property five years, DSCR savings can exceed $30,000 on a $600,000 loan.
Yes. After you've owned the property 6–12 months and have a lease in place, refinancing into DSCR is common. You'll lock in a lower rate and drop the points. Plan for a 30–45 day refinance timeline and closing costs of 1–2%.
DSCR lenders typically want a ratio of 1.2 or higher—meaning rent covers 120% of the payment. If you fall short, you'll need to show reserves or personal income to bridge the gap. Hard money doesn't care; it's purely asset-based.