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in Mountain House, CA
Mountain House investors use DSCR loans for buy-and-hold rentals and hard money for quick flips or heavy rehabs. Both ignore your W-2 income, but they serve completely different strategies.
DSCR loans lock in 30-year terms based on rental cash flow. Hard money gets you in fast with 12-month terms backed by property value alone.
DSCR loans qualify you on rental income divided by monthly debt. If the property generates $3,000 rent and the mortgage costs $2,400, your ratio is 1.25—approved.
You get 30-year fixed rates in the 7-8% range with 20-25% down. These work for single-family rentals, duplexes, and small multifamily in Mountain House.
Hard money lenders fund based on after-repair value, not current condition. They close in 7-14 days because they only care about equity and exit strategy.
Expect 9-12% rates and 2-4 points upfront. Terms run 6-12 months since these bridge you to a flip sale or conventional refinance.
DSCR costs less but takes 21-30 days to close. Hard money costs more but funds before you lose the deal to cash buyers.
DSCR requires stabilized rent and good condition. Hard money funds vacant properties, major renovations, and pre-rental situations.
Use DSCR when you're buying a turnkey rental or refinancing a performing property in Mountain House. The lower rate and long term protect your cash flow.
Use hard money when speed matters or the property needs work before it can rent. Plan your refinance or sale exit before you close.
No. DSCR lenders require habitable condition and proof of rental income. Use hard money first, then refinance to DSCR after repairs and tenant placement.
Hard money closes in 7-14 days. DSCR takes 21-30 days because lenders verify rent comps and property condition more thoroughly.
Yes. DSCR uses current value and rent comps. Hard money appraises after-repair value to determine max loan amount.
No. Expect 20-25% down minimum. Hard money also requires equity but may lend on future value after improvements.
DSCR works better if you're buying stabilized rentals. Hard money suits experienced investors who can manage rehabs and exit timelines confidently.