Question 1

Can I use a DSCR loan for a short-term rental in Tahoe?

Accepted Answer

Yes. Many DSCR lenders accept short-term rental income using Airbnb data or market rent estimates. Confirm the lender allows STR income before applying.

Question 2

How fast does hard money close?

Accepted Answer

Most hard money deals close in 5-10 business days. That speed is the main reason investors use it over conventional financing.

Question 3

What credit score do I need for a DSCR loan?

Accepted Answer

Most DSCR lenders require a 620 minimum. Higher scores get better rates. Rates vary by borrower profile and market conditions.

Question 4

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

Accepted Answer

Yes, and this is a common strategy. Investors buy and renovate with hard money, then refi into a DSCR loan once the property stabilizes.

Question 5

Which loan has lower rates in South Lake Tahoe?

Accepted Answer

DSCR rates run lower than hard money. Hard money costs more because it is short-term and asset-based. Rates vary by borrower profile and market conditions.

Question 6

Do either of these loans require income verification?

Accepted Answer

Hard money typically requires none. DSCR skips personal income docs but does verify the property's rental income covers the mortgage payment.

DSCR vs Hard Money Loans in South Lake Tahoe