Question 1

Can I use a DSCR loan on a property that needs work?

Accepted Answer

DSCR lenders want stabilized properties with existing or projected rent. A property needing major rehab usually won't qualify until it's rent-ready.

Question 2

How fast can hard money close in Arcata?

Accepted Answer

Hard money can close in days once the lender values the asset. Speed depends on title, appraisal, and how organized your file is.

Question 3

Do DSCR loans require a minimum credit score?

Accepted Answer

Most DSCR lenders want a 620 or higher. Some will go lower with stronger equity. Credit still matters — it just doesn't drive everything.

Question 4

What's a typical hard money loan term?

Accepted Answer

Most run 12 to 24 months. They're not meant to be held — the exit strategy, refinance or sale, is part of the deal from day one.

Question 5

Can I refinance from hard money into a DSCR loan?

Accepted Answer

Yes — this is a common strategy. Get in with hard money, stabilize the property, then refinance into DSCR for long-term cash flow.

Question 6

Which loan works better for Arcata student rentals?

Accepted Answer

DSCR fits well when the unit is occupied and rents are documented. Lenders count projected rents too, which helps near-campus properties qualify.

DSCR vs Hard Money Loans in Arcata, CA