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in Mount Shasta, CA
Mount Shasta investors face a choice between DSCR loans for buy-and-hold rentals and hard money for fix-and-flip projects. Both skip traditional income verification, but they serve completely different strategies.
DSCR loans work for properties already generating rent. Hard money works for deals that need fast cash and heavy rehab before they can qualify for permanent financing.
DSCR loans qualify you based on the property's rental income divided by its debt payment. If the ratio hits 1.0 or higher, the property pays for itself and you can get approved without proving personal income.
Terms run 30 years like conventional mortgages. Rates sit 2-3% above standard investor loans but you avoid the tax return scrutiny that kills most self-employed deals.
Mount Shasta vacation rentals and long-term properties both qualify if the numbers work. Minimum credit scores start at 620, though higher scores unlock better pricing.
Hard money lenders fund based on the property's value, not your income or credit profile. They care about the deal itself and your exit strategy for paying them back within 12-24 months.
Rates run 9-12% with 2-4 points upfront. These loans close in days, not weeks, which matters when competing against cash buyers on distressed Mount Shasta properties.
You put down 20-30% and the lender bases approval on after-repair value. This works for vacation cabins needing major updates or older homes that won't qualify for traditional financing in current condition.
DSCR loans give you 30 years to pay at mortgage-level rates. Hard money gives you 12-24 months at credit card-level rates but funds deals that banks won't touch.
DSCR requires the property to already generate rent covering the payment. Hard money funds properties that can't rent yet because they need work.
DSCR works when you want permanent financing and predictable monthly costs. Hard money works when you need speed and plan to refinance or sell within two years.
Choose DSCR if you're buying a Mount Shasta rental that's already tenant-ready or generating vacation rental income. You want permanent financing at rates you can live with for decades.
Choose hard money if you're buying a distressed property, competing against cash offers, or planning major renovations before refinancing. You need speed and the property can't qualify for traditional financing yet.
Most Mount Shasta investors use hard money to acquire and renovate, then refinance into DSCR once the property stabilizes and generates reliable rent. They're not competing strategies - they're different phases of the same investment cycle.
No. DSCR loans require current rental income to qualify. Properties needing major work won't generate rent and won't qualify until after renovations complete.
Most hard money lenders close in 5-10 business days. Some close in 72 hours if you have a strong down payment and clear title.
DSCR typically requires 620 minimum. Hard money lenders care less about credit - some approve scores below 600 if the deal works.
Yes. Most investors use hard money for acquisition and rehab, then refinance to DSCR once the property generates stable rental income.
Hard money costs more per month but you pay for 12-24 months. DSCR costs less monthly but you pay for 30 years if you hold that long.