Question 1

Can I use a DSCR loan on a vacant property?

Accepted Answer

Most DSCR lenders want a lease or a market rent appraisal. Vacant properties with no income history are a tough sell on DSCR.

Question 2

How fast does hard money fund in Chico?

Accepted Answer

Hard money can fund in as little as a few days. Speed depends on the lender and how clean your title and paperwork are.

Question 3

Do DSCR loans check my credit score?

Accepted Answer

Yes. Most DSCR lenders require a minimum score, often 620 to 680. Hard money lenders are more flexible on credit.

Question 4

What DSCR ratio do lenders want?

Accepted Answer

Most lenders want a ratio of 1.0 or higher — meaning rent covers the full mortgage payment. Some allow below 1.0 with a larger down payment.

Question 5

Can I refinance a hard money loan into a DSCR loan?

Accepted Answer

Yes, and this is a common strategy. Stabilize the property and get it leased, then refinance into a long-term DSCR loan.

Question 6

Which loan has lower rates in Chico?

Accepted Answer

DSCR loans carry significantly lower rates than hard money. Rates vary by borrower profile and market conditions.

DSCR Loans vs Hard Money Loans in Chico, CA