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in Fort Jones, CA
Fort Jones investors face a clear choice: rent-focused DSCR loans or flip-focused hard money. Both skip W-2 income checks, but they serve completely different strategies.
DSCR loans work for buy-and-hold rental properties with stable tenant income. Hard money funds quick acquisitions and renovations when speed trumps cost.
DSCR loans qualify you based on rental income, not tax returns. Lenders calculate your property's monthly rent against its mortgage payment to determine approval.
You need a DSCR of 1.0 or higher—meaning rent covers the full mortgage. Rates run 1-2% above conventional loans. Terms stretch 30 years with fixed or ARM options.
These loans close in 3-4 weeks. Expect 20-25% down and credit scores above 620. No job letters, no pay stubs, no employment verification at all.
Hard money loans fund based on property value, not income or credit. Lenders care about the asset and your exit plan—period.
These are bridge loans, not permanent financing. Terms run 6-24 months with rates from 8-15%. Points hit 2-5% upfront, and you pay interest-only monthly.
Hard money closes in 7-14 days, sometimes faster. Down payments range from 10-30% depending on experience and deal quality. Credit matters less than the property's potential.
DSCR loans cost less and last longer—think 6-7% rates for 30 years. Hard money hits 10%+ but closes in a week. That speed costs you roughly double in interest.
DSCR requires cash flow from day one. Hard money doesn't care if the property sits vacant during renovation. One needs tenant income, the other needs equity and a plan.
Fort Jones investors using DSCR hold properties long-term and refinance later. Hard money borrowers flip within 12 months or convert to permanent financing before the balloon payment hits.
Choose DSCR if you're buying a Fort Jones rental that already has tenants or can rent quickly. You want long-term financing and predictable payments. Your profit comes from appreciation and monthly cash flow over years.
Pick hard money when you're buying distressed properties that need work before they can rent. You're flipping for profit or renovating to refinance. Speed matters more than rate because you're out in under a year.
Most investors in Siskiyou County use hard money for acquisitions, then refinance into DSCR once tenants are in place. That two-step approach gets you the property fast and converts to cheaper permanent financing.
No. DSCR loans require rental income from day one. Use hard money for flips, then convert to DSCR if you decide to hold the property long-term.
DSCR loans can work if you show consistent short-term rental income. Hard money fits if you're renovating first, then plan to refinance once bookings stabilize.
Most don't check W-2s or tax returns. They focus on property value and your renovation budget. Your exit strategy matters more than your day job.
Yes. Many investors use hard money to buy and renovate, then refinance to DSCR once tenants are in place. Timing depends on your DSCR hitting 1.0 or higher.
DSCR lenders want 620 minimum. Hard money lenders care less about credit—some approve scores in the 500s if the deal and equity make sense.