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in Burlingame, CA
Burlingame investors face a choice: rental income financing or speed-first bridge capital. DSCR loans qualify you on property cash flow for long-term holds. Hard money gets you funded in days for flips and rehabs.
Both skip traditional income verification, but they serve different strategies. DSCR works when rents cover the mortgage. Hard money works when equity and exit speed matter more than rate.
DSCR loans use a property's rental income to qualify borrowers. You need a debt service coverage ratio of 1.0 or higher—meaning rents meet or exceed the mortgage payment. Most lenders want 20-25% down and credit above 640.
Terms run 30 years with fixed or adjustable rates. As of February 2026, rate cuts forecasted later this year could improve pricing on ARMs. You close in 30-45 days, same timeline as conventional loans.
Hard money loans are short-term bridge financing based on property value, not income. Lenders fund up to 70-75% of purchase price or after-repair value. Credit matters less than equity and exit strategy.
Terms run 6-24 months with interest-only payments. Rates sit 9-14% with 2-4 points upfront. You close in 5-10 days, sometimes faster. Use these for fix-and-flip projects or when speed beats cost.
Local decision guide
Use this comparison to weigh DSCR Loans and Hard Money Loans through local payment fit, eligibility, documentation, and timing before choosing a path in Burlingame.
Burlingame investors face a choice: rental income financing or speed-first bridge capital. DSCR loans qualify you on property cash flow for long-term holds. Hard money gets you funded in days for flips and rehabs.
Both skip traditional income verification, but they serve different strategies. DSCR works when rents cover the mortgage. Hard money works when equity and exit speed matter more than rate.
DSCR loans use a property's rental income to qualify borrowers. You need a debt service coverage ratio of 1.0 or higher—meaning rents meet or exceed the mortgage payment. Most lenders want 20-25% down and credit above 640.
Timeline separates these loans first. DSCR takes 30-45 days through traditional underwriting. Hard money closes in a week because lenders focus on property value, not borrower financials.
Cost structure flips next. DSCR rates run 1-2% above conventional—currently 7-9% range with forecasted cuts ahead. Hard money costs 9-14% plus points but pays off in months, not years. Your holding period determines which makes sense.
Choose DSCR when you're buying Burlingame rental property to hold long-term. You need rents that cover the mortgage and 30-45 days to close. This works for stable income properties where cash flow matters more than speed.
Choose hard money when you're flipping or facing a deadline. You need fast funding, have significant equity, and plan to refinance or sell within 12-24 months. Speed and certainty beat rate when deals move fast.
No. DSCR loans require rental income, which flips don't generate. Hard money is built for flips—you pay higher rates but exit fast through sale or refinance.
DSCR has standard closing costs like conventional loans. Hard money adds 2-4 points upfront, making it more expensive at close but faster to fund.
Yes, but for different strategies. DSCR fits long-term rentals with strong cash flow. Hard money fits quick acquisitions and rehab projects.
DSCR typically requires 640+ credit. Hard money cares less about credit—some lenders approve 580+ scores if equity and exit plan are solid.
Yes, that's a common strategy. Use hard money to acquire and renovate, then refinance into DSCR once the property generates rental income.