Loading
in Davis, CA
Davis is a tight rental market. The UC Davis student population keeps demand steady year-round.
Investors here often face a choice: DSCR for long-term holds, or hard money to move fast on a deal.
DSCR loans qualify you based on the property's rent — not your W-2 or personal income.
Lenders look at one number: does the monthly rent cover the mortgage payment? Most want a ratio of 1.0 or higher.
Hard money lenders care about the asset, not the borrower. They fund based on property value.
Expect short terms — typically 12 to 24 months. These are bridge loans, not long-term financing.
DSCR rates run higher than conventional, but lower than hard money. Hard money rates are steep — that's the cost of speed.
DSCR is a long-term hold tool. Hard money forces you to exit — refinance, sell, or pay it off fast.
Buying a Davis rental near campus and holding it? DSCR is the right call. The rent-to-mortgage math usually works in your favor.
Buying a distressed property fast or funding a flip? Hard money gets the deal done. Just have your exit plan ready before you close.
Yes. Lenders evaluate the rental income, not who's renting. Student-heavy markets with strong rents typically qualify well.
Most hard money lenders fund in 5 to 10 business days. Some move faster on clean deals with clear title.
Most DSCR lenders want at least 620 to 640. Stronger credit gets you better pricing. Rates vary by borrower profile and market conditions.
That's a common strategy. Acquire with hard money, stabilize the rent, then refinance into DSCR for a long-term hold.
Usually yes, but hard money lenders often accept drive-by or desktop appraisals. It's faster than a full conventional appraisal.
DSCR handles small multifamily well. If the combined rent covers the payment, you're in good shape for approval.