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in Chino, CA
Chino investors have two popular non-QM financing options for rental properties and fix-and-flip projects. DSCR loans focus on rental income, while hard money loans prioritize the property's value.
Both loans skip traditional income verification requirements. Your choice depends on your investment timeline and property strategy. Understanding each option helps you make the right financing decision.
DSCR loans qualify investors based on a rental property's income rather than personal income. The lender calculates if monthly rent covers the mortgage payment. This makes them ideal for long-term rental investments.
These loans typically offer longer terms and lower rates than hard money. They work well for buy-and-hold investors in Chino's rental market. Rates vary by borrower profile and market conditions.
Hard money loans are asset-based short-term loans primarily used for property acquisition and renovation projects. Lenders focus on the property's current and after-repair value. Speed and flexibility are the main advantages.
These loans close quickly, often within days or weeks. They're perfect for fix-and-flip projects or properties needing major repairs. Rates vary by borrower profile and market conditions, typically higher than traditional financing.
DSCR loans offer longer terms and focus on rental income potential. Hard money loans provide quick funding based on property value alone. The loan term is the biggest difference between these options.
DSCR loans suit investors planning to hold properties long-term. Hard money works for short-term projects with quick turnarounds. Interest rates and fees also differ significantly between the two products.
DSCR loans typically require the property to be rent-ready. Hard money lenders fund properties in any condition. Your exit strategy should guide your choice between these financing options.
Choose DSCR loans if you're buying rental properties in Chino for long-term cash flow. They offer better rates and terms for stabilized properties. You'll need a property that generates rental income.
Pick hard money loans for quick acquisitions or rehab projects in San Bernardino County. They're best when speed matters or the property needs work. Plan your exit strategy before committing to short-term financing.
Consider your investment timeline and property condition when deciding. Work with a local mortgage broker who understands both products. The right choice depends on your specific investment goals and financial situation.
DSCR loans are designed for rental properties, not flips. They require properties to generate rental income for qualification. Hard money loans are better suited for fix-and-flip projects.
Hard money loans close much faster, often in days or weeks. DSCR loans take longer, similar to traditional mortgages. Choose based on your timeline needs.
Both are more flexible than traditional loans. Hard money focuses mainly on property value. DSCR loans consider credit but emphasize rental income coverage.
Yes, many investors use hard money for acquisition and rehab, then refinance to DSCR. This strategy works well once the property generates rental income.
Both typically require 20-25% down, though requirements vary by lender. Hard money may require more for riskier projects. Rates vary by borrower profile and market conditions.