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in Chula Vista, CA
Both loans are built for investors, not owner-occupants. Neither cares about your W-2 or tax returns.
The difference is time horizon. DSCR is a long-term hold tool. Hard money is a short-term execution tool.
DSCR loans qualify based on the property's rental income. If the rent covers the mortgage, you likely qualify.
These are 30-year fixed or ARM products. They're built for landlords adding doors, not flippers chasing ARV.
HousingWire flagged Pennymac TPO just launched a DSCR product suite — more lenders means more competition on pricing.
Hard money lenders care about one thing: the asset. Your credit and income matter far less than the deal.
Terms run 6 to 24 months. Rates are higher, but speed is the point — close in days, not weeks.
These loans are designed for acquisition plus renovation. Lenders often fund both the purchase and rehab budget.
DSCR runs on rental income math. Hard money runs on collateral value. Different engines entirely.
DSCR gives you stability — fixed payments, long amortization. Hard money gives you velocity — fast capital, short clock.
Rates vary by borrower profile and market conditions. Hard money rates are consistently higher than DSCR rates.
Buying a Chula Vista rental to hold for years? DSCR is your loan. Get a rate that makes sense at 30 years.
Flipping a distressed property near the 805 corridor? Hard money gets you in and out before a DSCR lender finishes underwriting.
Some investors use both — hard money to acquire and rehab, then DSCR to refinance and hold. That's a real strategy.
Yes — this is one of the most common exit strategies. Once the rehab is done, DSCR refi replaces the hard money at a lower rate.
Most DSCR lenders want a 660–680 minimum. Some go lower, but pricing gets worse fast below 700.
Experienced hard money lenders can fund in 5–10 business days. Speed depends on clear title and a clean appraisal.
Most lenders require a ratio of 1.0 or higher — meaning rent covers the full mortgage payment. Some allow below 1.0 with a higher down payment.
DSCR rates are lower. Hard money is priced for short-term risk and speed. Rates vary by borrower profile and market conditions.
You can, but the short term forces a decision — sell or refinance. Most investors refi into DSCR once the property stabilizes.