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in Eastvale, CA
Eastvale investors have two popular financing options for rental properties. DSCR loans and hard money loans serve different needs and timelines.
DSCR loans work well for long-term rental income strategies. Hard money loans excel for quick acquisitions and fix-and-flip projects.
Both are non-QM products that don't rely on W-2 income verification. Understanding their differences helps you choose the right tool for your investment goals.
DSCR loans qualify investors based on rental property income, not personal income. The property's cash flow determines your borrowing power.
These loans offer longer terms, typically 30 years with fixed rates. They work like traditional mortgages but use rental income for approval.
Eastvale investors use DSCR loans for buy-and-hold rental strategies. Rates vary by borrower profile and market conditions.
Hard money loans are short-term financing backed by property value. Lenders focus on the asset, not your credit or income.
These loans close quickly, often within days or weeks. Terms typically run 6 to 24 months with higher interest rates.
Eastvale investors use hard money for fix-and-flip projects or quick purchases. They refinance or sell before the loan matures. Rates vary by borrower profile and market conditions.
The biggest difference is loan term and purpose. DSCR loans offer 30-year terms for rental income. Hard money provides short-term capital for renovations and flips.
Approval criteria differ significantly. DSCR requires positive rental income and decent credit. Hard money focuses on property value and exit strategy.
Cost structures vary widely between these products. DSCR loans have lower rates but stricter property requirements. Hard money costs more but offers flexibility and speed.
Choose DSCR loans if you're buying stabilized rental properties in Eastvale. They work best when you plan to hold long-term and the property generates rental income.
Pick hard money when speed matters or the property needs work. These loans shine for fix-and-flip projects or properties that don't yet qualify for traditional financing.
Many Riverside County investors use both strategically. They start with hard money for acquisition and renovation, then refinance into DSCR loans for long-term holds.
DSCR loans typically have lower rates than hard money loans. Hard money trades higher costs for speed and flexibility. Rates vary by borrower profile and market conditions.
Hard money loans can close in days to two weeks. DSCR loans typically take 30-45 days, similar to traditional mortgages.
DSCR loans usually require 620+ credit scores. Hard money lenders care less about credit and focus more on property value and your exit strategy.
Yes, both DSCR and hard money loans are available throughout Riverside County, including Eastvale. Lender requirements remain consistent across the county.
Hard money loans are better for fix-and-flip projects. They fund quickly and allow renovation work that DSCR lenders typically won't finance.