Question 1

What DSCR ratio do lenders require?

Accepted Answer

Most lenders want a DSCR of 1.0 or higher. That means rent must at least cover the full mortgage payment.

Question 2

How fast does hard money close?

Accepted Answer

Some hard money lenders close in 5–7 business days. Speed depends on the lender and how clean the deal is.

Question 3

Can I use hard money on a rental property?

Accepted Answer

Yes, but it's expensive to hold long-term. Most investors refinance into a DSCR loan once the property is stabilized.

Question 4

Do DSCR loans check my credit score?

Accepted Answer

Yes. Most DSCR lenders require a 620–640 minimum credit score. Higher scores get better rates.

Question 5

What's the minimum down payment for each loan?

Accepted Answer

DSCR loans typically require 20–25% down. Hard money lenders vary — many fund up to 70–75% of the after-repair value.

Question 6

Which loan works better in San Leandro?

Accepted Answer

Depends on your exit. Flippers lean hard money. Landlords building a portfolio lean DSCR. Many investors use both.

DSCR vs Hard Money Loans in San Leandro