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in Blythe, CA
Real estate investors in Blythe have two popular financing options. DSCR loans and hard money loans serve different investment strategies and timelines.
Both are non-QM loans that don't require traditional income verification. Understanding their differences helps you choose the right financing for your Riverside County investment property.
DSCR loans qualify investors based on rental property income, not personal income. The property's rent must cover the mortgage payment, typically at a 1.0 ratio or higher.
These loans work well for long-term rental properties in Blythe. They offer longer terms and lower rates than hard money options. Rates vary by borrower profile and market conditions.
DSCR loans typically close in 2-4 weeks. They function like traditional mortgages but use property income for qualification instead of W-2s or tax returns.
Hard money loans are short-term financing secured by the property itself. Lenders focus on the property's value and potential, not your credit score or income.
These loans excel for fix-and-flip projects in Blythe. They close quickly, often in 7-14 days, making them perfect for competitive bidding situations. Rates vary by borrower profile and market conditions.
Terms typically run 6-24 months with higher interest rates. Many investors use hard money to acquire and renovate, then refinance into a DSCR loan for long-term holding.
The main difference is timeline and purpose. DSCR loans are for rental properties you plan to hold long-term. Hard money loans are for quick acquisitions and renovations.
DSCR loans require the property to generate sufficient rental income. Hard money lenders care most about the property's current and after-repair value, not monthly cash flow.
Closing speed differs significantly between the two. Hard money closes faster but costs more in interest and fees. DSCR loans take longer but offer better long-term rates.
Choose DSCR loans if you're buying a rental property in Blythe to hold long-term. The property must already be rent-ready or need only minor repairs.
Choose hard money if you're flipping houses or need fast financing. It's ideal when properties need major renovations or you're in a competitive bidding situation.
Many savvy investors use both strategically. They acquire and renovate with hard money, then refinance into a DSCR loan once the property is rented and stabilized.
DSCR loans work best for rent-ready properties. If major repairs are needed, hard money is better for the initial purchase and renovation phase.
DSCR loans typically have lower rates than hard money loans. Rates vary by borrower profile and market conditions for both loan types.
Hard money loans close in 7-14 days. DSCR loans take 2-4 weeks. Speed depends on your documentation and property appraisal timeline.
DSCR loans typically require a 620+ credit score. Hard money lenders focus more on property value and may accept lower scores.
Yes, this is a common strategy. Investors use hard money to acquire and renovate, then refinance to a DSCR loan once the property is rented.