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in Lindsay, CA
Lindsay's ag-town rental market runs on cash flow, not W-2s. Both DSCR and hard money loans skip traditional income verification, but they serve completely different investor strategies.
DSCR loans work for buy-and-hold rental properties that generate consistent income. Hard money fits fix-and-flip projects or acquisitions that need fast funding with short timelines.
DSCR loans qualify you based on rental income divided by the mortgage payment. If the property generates $2,000 monthly rent and the payment is $1,600, your DSCR is 1.25—most lenders want 1.0 or higher.
These are 30-year fixed mortgages with rates typically 1-2% above conventional. You'll need 20-25% down and decent credit (usually 660+), but your job and tax returns don't matter.
Lindsay's affordable rental stock makes DSCR loans work well for investor portfolios. The property income does the talking, not your employment history.
Hard money lenders fund based on the property's after-repair value, not your income or the current condition. They'll lend 65-75% of ARV, which means you need skin in the game but can close in days.
Expect 9-14% rates and 2-4 points upfront. Terms run 6-24 months because these are bridge loans, not permanent financing. You're paying for speed and flexibility, not low cost.
Lindsay fix-and-flip investors use hard money to grab distressed properties fast, renovate quickly, and either sell or refinance into permanent financing. Credit matters less than your exit strategy.
Cost separates these loans dramatically. DSCR rates run 7-9% with minimal fees. Hard money hits 10-14% plus 2-4 points—you might pay $8,000 upfront on a $200,000 loan just in origination.
Timeline matters equally. DSCR loans take 3-4 weeks to close and last 30 years. Hard money closes in 5-10 days but expires in under two years. Pick based on your project timeline.
Qualification flips the script on traditional lending. DSCR needs the property to cash flow with decent credit. Hard money just needs equity and a solid exit plan—credit scores matter less.
Choose DSCR if you're buying a Lindsay rental to hold long-term. The property needs to generate enough rent to cover the mortgage, and you need time to close. This works for stabilized rentals with tenants in place.
Pick hard money if you're flipping a distressed Lindsay property or need to close before another buyer does. You'll pay more, but you get speed and can fund properties that won't qualify for traditional loans.
Many investors use both: hard money to acquire and renovate, then refinance into a DSCR loan once the property is rent-ready and cash flowing. That's how you minimize holding costs while building rental portfolios.
No, DSCR loans require rental income to qualify. Use hard money for flips, then refinance to DSCR if you decide to hold the property as a rental.
Hard money closes in 5-10 days. DSCR loans take 3-4 weeks because they require appraisals and full underwriting like traditional mortgages.
DSCR typically requires 660+ credit. Hard money lenders focus on equity and exit strategy—scores below 600 can still work if the deal makes sense.
DSCR loans need 20-25% down. Hard money varies but typically funds 65-75% of ARV, meaning you cover the rest plus renovation costs.
Yes, that's a common strategy. Complete the rehab, place a tenant, then refinance to a DSCR loan for long-term financing at lower rates.