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in Montague, CA
Montague investors face a choice between DSCR loans for rental income and hard money for quick flips. Both skip traditional income verification, but they serve completely different strategies.
DSCR works for buy-and-hold investors who want stable long-term financing. Hard money fits fix-and-flip projects where speed matters more than rate.
DSCR loans qualify you based on what the property earns, not what you make personally. If the rent covers 1.0-1.25x the mortgage payment, you're in.
You get 30-year fixed terms at rates similar to conventional loans, just 1-2 points higher. Minimum DSCR ratios vary by lender, but most want 1.0 or better for Montague rentals.
Expect 20-25% down and a full appraisal. Close in 30-45 days, which works fine when you're buying a turnkey rental that's already generating income.
Hard money lenders fund based on property value, not income or credit. They care about the after-repair value and your exit strategy, nothing else.
You pay 9-14% rates with 2-5 points upfront. Terms run 6-24 months because these loans aren't meant to be permanent financing.
Close in 7-14 days with minimal paperwork. You can fund properties that need major work, which DSCR lenders won't touch until the property's rent-ready.
Speed separates these loans immediately. Hard money closes in under two weeks; DSCR takes a month or more because lenders verify rental income and order full appraisals.
Cost structure flips the equation. DSCR rates sit around 7-9% with minimal points. Hard money hits 10-14% plus heavy upfront fees, but you're only carrying it short-term.
Property condition matters enormously. DSCR requires a rentable property with documented income. Hard money funds tear-downs and major rehabs that won't cash flow until you finish the work.
Choose DSCR when you're buying a rental that's already fixed up and generating income. You want low rates and long-term financing that doesn't force a quick refinance.
Pick hard money for flips or heavy rehabs in Montague where you'll sell or refinance within 12 months. The high cost doesn't matter if you're holding the loan for six months instead of six years.
Many investors use both. Hard money gets the property acquired and renovated. DSCR refinances it into permanent financing once the work's done and tenants are in place.
No. DSCR lenders require documented rental income and a property in rentable condition. Use hard money first, then refinance to DSCR after repairs.
Most hard money terms run 6-24 months. You're expected to flip the property or refinance into permanent financing before the term ends.
Hard money sometimes goes up to 90% loan-to-cost on the purchase plus rehab budget. DSCR caps at 75-80% LTV with 20-25% down required.
Yes. Neither loan requires you to live in California or show W-2 income from a local employer. Both focus on the property, not your location.
Most investors either flip to a retail buyer after renovation or refinance into DSCR once the property's generating rental income. Rates vary by borrower profile and market conditions.