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in Roseville, CA
Roseville investment properties attract strong rental demand from families working in tech and government sectors. Both DSCR and hard money loans serve real estate investors, but they work completely differently.
DSCR loans are for buy-and-hold rental properties you plan to keep. Hard money is for quick flips or properties needing major repairs before they can cash flow.
DSCR loans qualify you based on the rental income the property generates, not your W-2 or tax returns. You need a ratio above 1.0, meaning rent covers the mortgage payment plus taxes and insurance.
Terms run 30 years at rates comparable to conventional loans (usually 1-2% higher). Most DSCR lenders want 20-25% down and credit scores above 680, though some programs go lower.
These work for stabilized properties already generating rent or turnkey homes you'll rent immediately. Think single-family homes in West Roseville or duplexes near Dry Creek that need minimal work before tenants move in.
Hard money loans fund based on property value, not your income or credit. Lenders care about the deal itself and your exit strategy — how you'll pay them back in 6-24 months.
Rates run 9-14% with 2-4 points upfront. You'll put down 10-30% depending on experience and property condition. Speed is the trade-off — funding happens in days, not weeks.
Use hard money for properties that won't qualify for traditional financing yet. Distressed homes needing foundation work, outdated properties requiring full gut jobs, or situations where you're competing with cash buyers.
Timeline separates these loans immediately. DSCR takes 3-4 weeks to close but holds for 30 years. Hard money closes in 5-10 days but comes due in under two years.
Cost structure differs dramatically. DSCR loans charge conventional-style rates with standard closing costs. Hard money hits you with higher rates plus points, but buys you speed and flexibility on property condition.
Property requirements flip the script. DSCR needs rent-ready homes in good condition. Hard money specifically targets properties too rough for traditional financing — that's the entire point.
Choose DSCR if you're buying rental properties you'll hold long-term. You want lower rates, predictable payments, and properties that can generate rent immediately or within 30 days of minor cosmetic work.
Pick hard money when speed matters or the property needs serious work. You're flipping homes, doing major renovations before refinancing into DSCR, or competing against all-cash buyers on distressed Roseville properties.
Many investors use both strategically. Start with hard money to acquire and renovate a foreclosure. Six months later, refinance into a DSCR loan once the property is stabilized and rented. That's how you turn short-term debt into long-term wealth.
No, DSCR loans require rental income to qualify. Use hard money for flips, then refinance to DSCR if you decide to keep it as a rental.
Hard money closes in 5-10 days versus 3-4 weeks for DSCR. Speed costs you in higher rates and points, but wins deals against financed buyers.
DSCR loans don't require income verification. Hard money lenders focus on property value and exit strategy, not your W-2 or tax returns.
DSCR typically requires 680+ credit. Hard money lenders are more flexible, often approving deals with scores in the 600s if equity is strong.
Yes, that's a common strategy. Complete renovations with hard money, stabilize rent, then refinance to DSCR for long-term lower rates.