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in Dunsmuir, CA
Dunsmuir investor properties need different financing than coastal markets. DSCR loans work for cash-flowing rentals, while hard money funds quick flips and major rehabs.
Both skip W-2 income verification, but they serve opposite timelines. DSCR gives you 30-year terms at normal rates. Hard money gives you fast cash for 6-18 months at premium pricing.
The choice depends on your exit strategy. Long-term rental hold? DSCR every time. Fix-and-flip or bridge financing until renovation completes? That's hard money territory.
DSCR loans qualify you on rental income alone. Lenders divide monthly rent by the mortgage payment to get your coverage ratio. Most want 1.0 or higher, meaning rent covers the full payment.
You get standard 30-year terms with rates 1-2 points above conventional mortgages. Credit minimums run 620-680 depending on the lender. Down payments start at 20-25% for single-family properties.
Perfect for Dunsmuir investors buying long-term rentals near Castle Crags or downtown. The property cash flow qualifies you, not your tax returns. No two-year employment history required.
Hard money lenders fund based on property value, not your financials. They look at after-repair value for fixer properties. Approval takes days, not weeks, with minimal documentation required.
Rates run 8-15% with 2-5 points upfront. Terms last 6-18 months because these are bridge loans. You pay interest-only monthly, then refinance or sell to exit.
Dunsmuir fix-and-flip investors use hard money to grab distressed properties fast. Renovation projects that can't get bank financing work here. Speed and flexibility cost more, but execution speed matters most.
Timeline separates these loans completely. DSCR works for 30-year rental strategies. Hard money bridges short-term gaps until you renovate, refinance, or sell within a year.
Cost structure differs dramatically. DSCR rates sit around 7-9% with minimal fees. Hard money charges 10-15% plus points, but speed justifies premium pricing for time-sensitive deals.
Qualification flips the script. DSCR needs existing or projected rent to cover payments. Hard money just needs equity in the property. Your credit and income matter less with hard money.
Exit strategy determines fit. Plan to hold and collect rent? DSCR gives sustainable payments. Plan to renovate and flip within a year? Hard money funds the acquisition and construction.
Choose DSCR when you're buying a turnkey rental or light rehab that rents immediately. These loans make sense for Dunsmuir properties generating steady income from day one. You want predictable monthly costs and long-term financing.
Pick hard money when speed matters more than cost. Distressed properties that need major work before they qualify for traditional financing. Foreclosure auctions where you need cash-equivalent offers within 48 hours.
Many investors use both strategically. Hard money acquires and renovates the property. DSCR refinances it once tenants move in and income stabilizes. This one-two approach maximizes leverage across your portfolio.
Yes, this strategy works well for properties needing renovation before they qualify for DSCR. Once repairs finish and you have lease agreements, you can refinance into 30-year DSCR financing.
DSCR lenders often hesitate on very rural properties with limited rental comps. Hard money cares only about property value, making it more flexible for remote mountain locations.
Correct. DSCR qualifies on rental income alone, while hard money focuses on property equity. Neither requires W-2s or tax returns for approval.
DSCR typically requires 620-680 minimum. Hard money lenders may approve scores as low as 580-600 if you have sufficient equity in the property.
Yes, cash-out hard money refinances work for major rehab projects. You borrow against current equity to fund renovations that increase property value.