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in Mount Shasta, CA
Mount Shasta attracts real estate investors for good reason. Short-term rentals, vacation cabins, and fix-and-flip projects all run through this market.
Two non-QM loans dominate investor deals here: DSCR and hard money. They solve different problems. Picking the wrong one costs you time and money.
DSCR loans qualify you based on rental income, not your tax returns. Lenders look at whether the property cash flows — that's the debt service coverage ratio.
A ratio above 1.0 means rent covers the mortgage. Most lenders want 1.1 or higher. This loan fits buy-and-hold investors building a rental portfolio in Mount Shasta.
Hard money loans are asset-based and move fast. The lender cares about the property's value — not your income, not your credit score.
These are short-term loans, typically 12 to 24 months. They're built for investors who need to close quickly, renovate, then sell or refinance out.
Local decision guide
Use this comparison to weigh DSCR Loans and Hard Money Loans through local payment fit, eligibility, documentation, and timing before choosing a path in Mount Shasta.
Mount Shasta attracts real estate investors for good reason. Short-term rentals, vacation cabins, and fix-and-flip projects all run through this market.
Two non-QM loans dominate investor deals here: DSCR and hard money. They solve different problems. Picking the wrong one costs you time and money.
DSCR loans qualify you based on rental income, not your tax returns. Lenders look at whether the property cash flows — that's the debt service coverage ratio.
Rate is the biggest gap. Hard money rates run significantly higher than DSCR rates. That spread matters if you're holding a property more than a few months.
DSCR loans are long-term instruments. Hard money is a bridge. If your Mount Shasta cabin needs work before it can rent, hard money gets you in. DSCR gets you to hold.
Buy a turnkey vacation rental on Airbnb? DSCR is your loan. The property earns income, the loan qualifies on that income, and you hold long-term.
Buying a fixer cabin at a discount to renovate and resell? Hard money fits. Close fast, renovate, then exit. Many investors in Siskiyou County use both — sequentially.
Yes. Many DSCR lenders accept Airbnb income projections. The property just needs to show a qualifying rent-to-mortgage ratio.
Often 5 to 10 business days. That speed is the main reason investors use it despite the higher cost.
Most DSCR lenders want at least 620 to 640. Hard money lenders are more flexible — some have no minimum.
Yes, and that's a common strategy. Renovate with hard money, stabilize the rental, then refinance into a long-term DSCR loan.
DSCR loans carry lower rates than hard money. Rates vary by borrower profile and market conditions.
Neither one does. DSCR qualifies on property income. Hard money qualifies on asset value. Both skip personal income docs.