Loading
in Exeter, CA
Exeter rental properties need smart financing. DSCR loans and hard money loans both skip personal income checks, but they serve completely different investment strategies.
DSCR works for cash-flowing rentals you plan to hold. Hard money works for quick flips or properties that need serious work before they qualify for traditional financing.
DSCR loans qualify you based on rental income, not paystubs. The property must generate enough rent to cover the mortgage payment, typically 1.0 to 1.25 times the monthly debt service.
These are 30-year fixed or adjustable loans with rates comparable to conventional financing. You can finance single-family rentals, multi-units, or investment properties throughout Tulare County.
Expect 20-25% down and credit scores around 620 minimum. Closing takes 30-45 days, similar to traditional loans.
Hard money loans fund based on property value, not income or credit. Lenders care about the asset and your exit strategy, making these ideal for distressed properties or time-sensitive deals.
Terms run 6 to 24 months with rates typically 9-14%. You're paying for speed and flexibility, not long-term affordability.
Down payments start at 25-35% depending on deal structure. Closings happen in days, not weeks, which matters when you're competing for foreclosures or auction properties.
DSCR loans carry rates 1-2% above conventional mortgages and amortize over 30 years. Hard money runs 9-14% with balloon payments due in under two years.
DSCR requires stabilized properties with tenants or clear rental potential. Hard money finances properties that won't qualify anywhere else, including tear-downs and major rehabs.
DSCR closing costs mirror traditional loans at 2-3% of loan amount. Hard money charges 2-5 points upfront plus higher closing costs, making it expensive to hold long-term.
Choose DSCR if you're buying a rental property to hold for years. The property needs to be livable and capable of generating rent that covers your mortgage payment.
Choose hard money if you're flipping, doing a heavy rehab, or need to close before conventional financing catches up. You should have a clear exit plan within 12-18 months.
Many Exeter investors use hard money to acquire and renovate, then refinance into DSCR once the property is stabilized and rented. This sequence works well for value-add strategies.
Minor repairs are fine, but major rehabs don't qualify. The property must be rent-ready and pass appraisal in current condition.
Most hard money lenders close in 5-10 days if the property appraises. Some can fund in 72 hours for time-sensitive deals.
DSCR typically requires 620+ credit. Hard money lenders focus on the deal, not your score, though 600+ helps.
Hard money costs more upfront but avoids DSCR's full closing costs if you're refinancing soon. Run the numbers for your timeline.
Yes. Both loan types work throughout Tulare County as long as the property is residential investment real estate.