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in Dinuba, CA
Dinuba investors typically choose between DSCR loans for stable rental income and hard money for quick flips. Both skip personal income verification but serve different timelines and strategies.
DSCR loans work for long-term holds with rental income. Hard money fits short-term projects where speed matters more than rate.
DSCR loans qualify you based on the property's rental income versus the mortgage payment. If rent covers 1.0x to 1.25x the PITIA payment, you're likely approved regardless of your tax returns.
Terms run 30 years with rates typically 1-2% above conventional loans. You'll need 20-25% down and a 620+ credit score, but no tax returns or employment verification.
Hard money loans fund in days based purely on property value and your equity position. Lenders care about the asset, your experience, and your exit plan—not your income or credit history.
Expect 8-12% rates with 2-4 points upfront on 6-24 month terms. You'll put down 10-30% depending on the deal, and most loans are interest-only during the rehab phase.
DSCR loans cost less but take 30-45 days to close. Hard money costs more but funds in a week when you need to move fast on a Dinuba fix-and-flip or competitive purchase.
DSCR requires the property to already generate or project rental income with a lease. Hard money works on vacant properties, distressed assets, or anything with solid after-repair value.
Choose DSCR if you're buying a turnkey rental or refinancing a performing property you plan to hold. The lower rate saves thousands over time when cash flow is your goal.
Choose hard money when closing speed matters—foreclosure auctions, off-market deals, or properties needing heavy rehab before they'll appraise. You'll refinance out within 12-18 months anyway.
Not typically. DSCR loans require the property to be rent-ready or already occupied. Hard money covers purchase and rehab costs for distressed properties.
DSCR loans have standard closing costs around 2-3%. Hard money adds 2-4 points upfront, making it more expensive initially but faster to fund.
You need either current rent with a lease or a market rent appraisal showing projected income. Hard money doesn't require any income documentation.
Yes, this is common strategy. Flip with hard money, stabilize with tenants, then refinance to DSCR for long-term hold at lower rates.
Both work fine remotely. DSCR is cleaner for turnkey properties. Hard money requires more local coordination if you're managing a rehab from distance.