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in Rohnert Park, CA
Rohnert Park investors face a clear choice between DSCR and hard money loans. Both skip personal income verification, but they serve completely different investment strategies.
DSCR loans work for buy-and-hold rental properties that cash flow. Hard money finances quick flips and heavy rehabs where speed trumps cost.
DSCR loans qualify you based on your property's rental income, not your tax returns. If the rent covers the mortgage payment by at least 1.0x to 1.25x, you're approved.
Terms mirror conventional loans: 30-year fixed rates, lower rates than hard money, and long-term holds. You need 20-25% down and decent credit, but your W-2 income doesn't matter.
Closing takes 21-30 days. These loans fit Rohnert Park landlords buying stable rental properties near Sonoma State or the business corridor.
Hard money loans fund based on the property's current or after-repair value, not your income or credit score. Lenders care about the deal, not your tax returns.
Expect 8-12% rates and 2-4 point origination fees. Terms run 6-24 months because these are bridge loans, not permanent financing.
You can close in 5-10 days with minimal documentation. Hard money works for Rohnert Park investors buying distressed properties, doing major renovations, or competing in cash-heavy bidding wars.
Speed versus cost defines this comparison. Hard money closes in a week but costs 3-5% more annually than DSCR. DSCR takes three weeks but saves tens of thousands in interest.
DSCR requires the property to cash flow from day one. Hard money doesn't care about current income because you're selling or refinancing soon anyway.
Credit matters more with DSCR—most lenders want 620 minimum. Hard money lenders focus on your exit strategy and property value, not your credit report.
Use DSCR if you're buying a turnkey rental or light-rehab property you'll hold for years. The lower rate pays off when you're keeping the loan long-term.
Use hard money if you're flipping a Rohnert Park fixer, need to close in days to win a deal, or plan to refinance within 12 months. Speed and flexibility justify the higher cost.
Yes, both DSCR and hard money lenders finance properties throughout Sonoma County. Many investors use hard money to acquire and renovate, then refinance into a DSCR loan for long-term holding.
DSCR loans offer significantly lower rates, typically 3-5% below hard money. Hard money rates run 8-12% because they're short-term bridge financing, not permanent loans.
You don't need an LLC for either, but many investors use one for liability protection. Both loan types allow individual or entity borrowers.
Hard money approves faster with fewer requirements since it's asset-based. DSCR needs better credit and proof the property cash flows, but both skip personal income verification.
No, both DSCR and hard money are strictly for investment properties. You cannot live in a property financed with either loan type.