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in Corona, CA
Corona real estate investors have two powerful financing options: DSCR loans and hard money loans. Both are non-QM products that don't rely on W-2 income verification.
DSCR loans focus on rental property cash flow for long-term holds. Hard money loans prioritize asset value for quick acquisitions and flips. Understanding the differences helps you match financing to your investment strategy.
Rates vary by borrower profile and market conditions. Your choice depends on project timeline, exit strategy, and property condition.
DSCR loans qualify investors based on rental property income, not personal income. The debt service coverage ratio compares monthly rent to the mortgage payment.
These loans work well for Corona rental properties with stable tenants. Terms typically span 30 years with fixed or adjustable rates. You don't need tax returns or employment verification.
Rates vary by borrower profile and market conditions. DSCR loans offer longer terms than hard money, making them ideal for buy-and-hold strategies in Riverside County.
Hard money loans are short-term, asset-based financing for real estate investors. Lenders focus on the property's value rather than your credit score or income.
These loans fund quickly, often within days. Terms usually run 6 to 24 months. Corona investors use them for fix-and-flip projects, property acquisitions, and bridge financing.
Rates vary by borrower profile and market conditions. Hard money loans cost more than traditional financing but provide speed and flexibility. They work for properties needing renovation that won't qualify for conventional loans.
Loan duration separates these products most clearly. DSCR loans offer 30-year terms while hard money maxes out around 24 months. This fundamental difference shapes which strategy each loan supports.
Approval criteria also differ significantly. DSCR loans require positive rental income calculations. Hard money loans focus on property value and equity. Hard money funds faster but costs more.
Exit strategies matter when choosing between them. DSCR loans work when you plan to hold and rent. Hard money works when you plan to renovate and sell or refinance quickly.
Choose DSCR loans when buying rental properties you plan to hold long-term in Corona. These loans work for stabilized properties with tenants already in place or strong rental demand.
Choose hard money when speed matters or the property needs work. Fix-and-flip investors and those buying distressed Corona properties benefit most. Hard money also bridges gaps when you need quick closings.
Many investors use both loan types for different projects. Your investment strategy, property condition, and timeline determine the best fit. Rates vary by borrower profile and market conditions for both options.
DSCR loans typically require the property to be rent-ready. For major renovations, hard money loans work better initially, then refinance to DSCR once stabilized.
DSCR loans generally have lower rates than hard money loans. However, rates vary by borrower profile and market conditions. Hard money costs more due to speed and flexibility.
DSCR loans typically require 620+ credit scores. Hard money lenders are more flexible with credit since they focus on asset value and equity position.
Hard money loans can close in 5-10 days. DSCR loans typically take 21-30 days. Choose based on whether you need speed or lower long-term costs.
No, both DSCR and hard money loans are designed for investment properties only. You'll need conventional or FHA financing for primary residences.