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in San Juan Bautista, CA
San Juan Bautista is a small market with real investor opportunity. Knowing which loan fits your deal can be the difference between profit and a mistake.
DSCR and hard money loans are both non-QM products. But they serve very different strategies and timelines.
DSCR loans qualify you based on the rental income the property generates. Your W-2 or tax returns don't enter the picture.
Lenders look at your debt service coverage ratio — rent divided by monthly debt. A ratio above 1.0 means the property covers its own payment.
Hard money lenders focus on the property's value — not your credit or income. Approval can happen in days, not weeks.
These are short-term loans, typically 6 to 24 months. They're built for acquisitions, fix-and-flips, and bridge situations.
DSCR loans carry lower rates and longer terms. Hard money moves faster but costs more — sometimes significantly more.
Hard money has almost no qualifying hurdles. DSCR still requires a minimum credit score, usually 620 or higher, depending on the lender.
If you're buying a rental and plan to hold it, DSCR is the right call. You get a real term structure and a manageable rate.
If you're flipping a property or need to close fast, hard money makes sense. Just have your exit strategy locked before you sign.
No. DSCR loans are structured for income-producing rentals. Use hard money for flips — it's built for short holds.
Most focus on the asset, not the borrower. Some do a soft pull, but credit score rarely drives the decision.
Most lenders want 1.0 or higher. Some allow below 1.0 with stronger credit or a larger down payment.
Many hard money deals close in 5 to 10 business days. Timeline depends on the lender and property type.
Yes — this is a common exit strategy. Stabilize the property, then refinance into a DSCR loan for the long hold.
Hard money requires the least. DSCR needs property financials and a credit check, but skips personal income docs.