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in Oceanside, CA
Oceanside investors have two solid non-QM options when personal income won't qualify them. DSCR loans work for rental holds with steady cash flow. Hard money loans fund quick flips and major renovations.
Most Oceanside deals fall clearly into one camp or the other. Pick wrong and you'll overpay on rate or miss your closing window entirely.
DSCR loans qualify you based on rental income, not your tax returns. Lenders want the property's rent to cover at least 100% of the mortgage payment. No job letters, no pay stubs, just a rent schedule or appraisal showing market rents.
Rates run 1-2% above conventional loans. You can lock in 30-year terms with 20-25% down. These work for investors building rental portfolios in coastal Oceanside neighborhoods where rents justify the purchase price.
Hard money loans fund based on property value, not income or credit. Lenders care about your exit strategy and equity position. You get cash in 5-10 days, which matters when competing for distressed Oceanside properties.
Expect 9-14% rates and 2-4 points upfront. Terms run 6-24 months, not 30 years. You're paying for speed and approval certainty, not long-term affordability.
Rate spread is the biggest gap. DSCR loans price like mortgages because they are mortgages. Hard money prices like bridge financing because that's what it is. You'll pay 6-10% more annually on hard money.
Timeline works opposite ways. DSCR loans need 25-40 days for underwriting and appraisal. Hard money can fund before the DSCR lender finishes your file. Exit strategy matters too—DSCR assumes you'll hold and rent, hard money assumes you'll sell or refi within two years.
Pick DSCR if you're buying a rental property that's rent-ready or needs minor cosmetic work. The lower rate matters when you're holding long-term. Oceanside single-families near the beach or downtown rent well enough to hit DSCR minimums.
Pick hard money if you're buying a distressed property, competing against cash offers, or planning a heavy renovation. The rate hurts but you're only carrying it 8-18 months. Speed and approval certainty beat price when you're flipping or doing major rehab work.
Not really. DSCR lenders want rent-ready properties and won't fund major renovations. Hard money exists specifically for fix-and-flip projects.
Hard money is more flexible. DSCR lenders typically want 620+ credit scores. Hard money lenders focus on equity and may approve with lower scores.
Yes, this is common. Flip with hard money, convert to rental, then refi into DSCR for long-term hold at a lower rate.
Yes. Neither has the 4-10 financed property limits that conventional loans impose. You can scale a rental portfolio with DSCR loans.
Hard money. Construction projects need draw schedules and short-term funding. DSCR loans don't handle construction phases well.