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in Los Gatos, CA
Los Gatos attracts serious real estate investors. Both DSCR and hard money loans serve investors — but they solve very different problems.
Choosing the wrong one costs you money. Know which loan fits your deal before you make an offer.
DSCR loans qualify you based on rental income, not your W-2. Lenders look at whether the property's rent covers the mortgage payment.
A DSCR above 1.0 means the property pays for itself. Most lenders want 1.1 or higher to approve the loan.
Hard money lenders care about the asset, not you. They lend based on the property's current or after-repair value.
These loans close fast — sometimes in days. That speed matters in a competitive market like Los Gatos.
DSCR loans carry lower rates and longer terms. Hard money rates run significantly higher — the tradeoff is pure speed and flexibility.
DSCR requires a rentable property with stable income. Hard money works on distressed properties that won't qualify for standard financing.
Buying a rental and holding it? DSCR is the right tool. The property's cash flow does the qualifying work for you.
Flipping or need to close fast? Hard money wins. Refinance into a DSCR loan once the property is stabilized and rented.
Generally no. DSCR lenders need a rentable property with documented income. Hard money is the better fit for distressed or vacant properties.
Many hard money deals close in 5 to 10 business days. That's a major edge in fast-moving markets like Los Gatos.
Most DSCR lenders want 680 or higher. Some go down to 660 with a stronger DSCR ratio and larger down payment.
Yes — and many investors plan for this from day one. Once the property is rented and stabilized, a DSCR refi replaces the hard money.
DSCR loans carry lower rates than hard money. Rates vary by borrower profile and market conditions for both loan types.
DSCR loans typically require 20-25% down. Hard money lenders often lend up to 65-70% of after-repair value.