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in Milpitas, CA
Both loans skip personal income verification. That's where the similarities end.
Milpitas investors use these tools for very different jobs. Knowing which fits your deal saves time and money.
DSCR loans qualify you based on the rental property's cash flow. If rent covers the mortgage, you're in the game.
These are long-term loans — 30-year fixed options exist. They're built for buy-and-hold investors who want stable financing.
Hard money lenders care about the asset, not you. They lend against the property's current or after-repair value.
Expect short terms — typically 12 to 24 months. These loans are built for fix-and-flip or fast acquisition, not long holds.
DSCR loans carry lower rates and longer terms. Hard money rates run significantly higher — that cost is baked into your flip budget.
Credit matters more for DSCR. Hard money lenders focus on the deal itself. A strong asset can overcome a weaker borrower profile.
Buying a Milpitas rental to hold for cash flow? DSCR is your loan. Run the numbers on rent vs. payment first.
Flipping or bridging to a permanent loan? Hard money gets you in fast. Just know your exit before you close.
No. DSCR loans require the property to generate rental income. Fix-and-flip deals need hard money or a bridge loan.
Many hard money deals close in 5 to 14 days. Speed is the main reason investors pay the higher rate.
Most lenders want a ratio of 1.0 or higher — meaning rent covers the full mortgage payment. Some allow below 1.0 with more down.
Some do, some don't. Asset value is the priority. A weak credit score won't kill most hard money deals in a strong market.
Yes — that's a common exit strategy. Stabilize the property, get it rented, then refi into a long-term DSCR loan.
DSCR fits buy-and-hold multifamily well. Hard money works if you're acquiring distressed units to renovate and then refi or sell.