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in Los Altos Hills, CA
Los Altos Hills attracts serious real estate investors. Both DSCR and hard money loans serve that crowd — but for very different strategies.
Picking the wrong loan type costs you time and money. Know which one fits your deal before you apply.
DSCR loans qualify you based on rental income, not your W-2 or tax returns. The property's cash flow does the talking.
Lenders look at your Debt Service Coverage Ratio — rent divided by monthly loan payment. A ratio above 1.0 means the property pays for itself.
Hard money lenders care about the asset, not your credit history. They lend based on property value and your exit strategy.
These are short-term loans — typically 12 to 24 months. Investors use them to move fast on acquisitions or fund a renovation before refinancing out.
DSCR loans carry lower rates and longer terms. Hard money moves faster but costs more — higher rates and fees are the price of speed.
DSCR underwriting takes weeks. Hard money can close in under two weeks. If you're competing for a Los Altos Hills property, timing matters.
Buying a rental you plan to hold for years? DSCR is your loan. It keeps costs low and matches the investment timeline.
Flipping a property or need to close before another buyer does? Hard money is built for that. Just have your exit plan locked in before you borrow.
No. DSCR loans are built for rentals, not short holds. Use hard money for flips, then refinance into a DSCR loan if you decide to hold.
Most do a light credit review, but it's not the deciding factor. Property value and your exit strategy carry far more weight.
Most lenders want a ratio of 1.0 or higher. Some will go down to 0.75, but expect a higher rate and tighter terms.
Many hard money lenders close in 7 to 14 days. Some can move faster with a clean deal and clear title.
Yes — this is a common strategy. Fix the property, stabilize the rent, then refinance into a long-term DSCR loan.
DSCR loans carry lower rates than hard money. Hard money's higher cost reflects the speed and flexibility it provides. Rates vary by borrower profile and market conditions.