Question 1

Can I use a DSCR loan on a vacant property?

Accepted Answer

Most DSCR lenders want a lease in place or strong market rent data. A vacant property with no rental history is a tougher sell.

Question 2

How fast can hard money close in Gridley?

Accepted Answer

Some hard money lenders close in 5 to 10 business days. Speed depends on the lender and how clean the deal is.

Question 3

What DSCR ratio do lenders want?

Accepted Answer

Most lenders want a DSCR of 1.0 or higher — meaning rent covers the full payment. Some go down to 0.75 with a higher rate.

Question 4

Can I refinance hard money into a DSCR loan?

Accepted Answer

Yes — this is a common exit strategy. Stabilize the property, get it rented, then refinance into a 30-year DSCR loan.

Question 5

Do hard money lenders check credit at all?

Accepted Answer

Some do a soft pull, but credit is rarely the deciding factor. The property's value and your equity position matter far more.

Question 6

Which loan has lower rates in Butte County?

Accepted Answer

DSCR rates run lower than hard money. Hard money lenders charge a premium for speed and flexibility. Rates vary by borrower profile and market conditions.

DSCR Loans vs Hard Money Loans in Gridley, CA