A hard money loan is a short‑term, asset‑based real estate loan funded by private lenders, not banks.
In California, these loans are extremely common for fix‑and‑flip projects, bridge financing, distressed properties, and fast closings.
Hard money lenders focus on the value of the property, not the borrower’s income or credit.
Key Features of Hard Money Loans in California
1. Asset‑Based Approval
Lenders care primarily about:
• Property value
• After‑repair value (ARV)
• Exit strategy
Credit and income matter far less than in traditional loans.
2. Fast Funding
• Same‑day approvals
• Funding in days
A DSCR loan (Debt Service Coverage Ratio loan) is a real estate investor mortgage that qualifies the borrower based on the property’s cash flow, not their personal income. This makes it ideal for California investors who want to scale portfolios without providing tax returns, W‑2s, or paystubs.
DSCR loans are designed for rental properties, including long‑term and short‑term rentals
How DSCR Works:
The lender calculates:
Gross Rental Income = PITIA
Most Cali
fornia lenders want:
• DSCR ≥ 1.0 (property covers its payment)
• Some allow DSCR < 1.0 with pricing adjustment.
Borrowers can vest in the LLC, S Corp, Etc.
10 days seasoning for DP and Cash to Close.
Very little if ANY reserves necessary.
Cash out can be used as reserves.
-This means the property qualifies itself based on rent
Key Features of DSCR Loans in California
1. No Income Documentation
Lenders do not require:
• Tax returns
• W‑2s
• Paystubs
Instead, they use:
• Lease agreements
• Market rent (Form 1007)
• Airbnb/short‑term rental income (with some lenders)
2. Flexible Borrower Requirements
California DSCR lenders commonly offer:
• Up to 80% LTV on purchases and refinances