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in Fairfield, CA
Fairfield investors have two strong non-QM tools available. DSCR and hard money loans solve different problems — knowing which to use can make or break a deal.
Neither loan qualifies you on W-2 income. Both are built for real estate investors. The right choice depends on your strategy and timeline.
DSCR loans qualify based on rental income, not yours. Lenders look at the property's monthly rent versus its monthly debt payment.
A DSCR above 1.0 means the property covers its own mortgage. Most lenders want 1.1 or higher. This is a long-term hold loan — 30-year terms are standard.
Hard money loans are asset-based and fast. The lender cares about the property's value — your credit and income matter far less.
These are short-term loans, typically 6 to 24 months. Rates are higher, but speed and flexibility are the trade. Fix-and-flip investors use these constantly.
DSCR loans run lower rates and longer terms. Hard money runs faster closes and looser qualification. The gap between their rates is significant.
DSCR lenders want the property to cash flow. Hard money lenders want equity — they'll lend on after-repair value (ARV) for renovation projects.
Buying a Fairfield rental you plan to hold? Use DSCR. The property income qualifies the loan and you get a stable long-term rate.
Flipping a distressed property or need to close in under two weeks? Hard money is the play. Just have your exit strategy locked before you close.
Generally no. DSCR lenders want move-in ready rentals with provable rent. Hard money is the right tool for distressed acquisitions.
Many hard money lenders close in 5 to 10 business days. That speed is the main reason investors use them over conventional financing.
DSCR lenders typically want 660 or higher. Hard money lenders are more flexible — some approve with scores in the 600s or lower.
Yes — and many investors do exactly that. Stabilize the property, get it rented, then refinance into a long-term DSCR loan.
DSCR loans run lower rates. Hard money carries a premium for speed and flexibility. Rates vary by borrower profile and market conditions.
No. Neither DSCR nor hard money loans require personal tax returns. That's a core reason investors use both of these non-QM products.