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in Lodi, CA
Lodi's rental and investment market draws two types of buyers. Some want long-term holds. Others want fast flips.
DSCR and hard money loans both skip personal income verification. But they serve very different strategies.
DSCR loans qualify based on rent income, not yours. If the property cash flows, you can get approved.
These are 30-year loans. Rates are higher than conventional, but the hold strategy makes that work long-term.
Hard money lenders care about the property's value, not your finances. Approval can happen in days.
Terms run 6 to 24 months. These loans are designed to get you in, renovate, and get out.
DSCR loans are long-term financing. Hard money is a bridge. Using the wrong one kills your returns.
Hard money rates run significantly higher than DSCR. That cost is fine over 6 months, brutal over 5 years. Rates vary by borrower profile and market conditions.
Buy a rental in Lodi's wine country corridor and plan to hold it? DSCR is your loan. It's built for that.
Picking up a distressed property to flip or renovate? Hard money gets you to the closing table fast. Refinance into DSCR after if you decide to keep it.
Generally no. DSCR lenders want the property rent-ready. Use hard money to renovate, then refinance into a DSCR loan.
Hard money can close in days. DSCR typically takes 2 to 4 weeks, similar to conventional timelines.
DSCR lenders usually want a 620 minimum. Hard money lenders focus on the asset and often have more flexibility on credit.
Most lenders want a DSCR of 1.0 or higher. That means rent covers the mortgage payment. Some programs allow below 1.0.
Yes. That's a common strategy. Investors use hard money to acquire and renovate, then refinance into long-term DSCR financing.
DSCR handles small multifamily well. Hard money also works for acquisition and rehab of those properties before a refi.