Question 1

Can I use DSCR loans for fix-and-flip projects in Mariposa?

Accepted Answer

Not really. DSCR lenders need immediate rental income to qualify you. Properties requiring major rehab won't generate that cash flow until renovations finish.

Question 2

How much does hard money cost compared to DSCR?

Accepted Answer

Hard money runs 9-14% plus 2-5 points upfront. DSCR typically costs 7-9% with minimal fees, but takes longer to close.

Question 3

What credit score do I need for each loan type?

Accepted Answer

DSCR usually requires 660+ credit. Hard money lenders care less about scores—some approve borrowers in the 500s if equity is strong.

Question 4

Can I refinance hard money into DSCR after renovations?

Accepted Answer

Yes, this is common. Complete the rehab, place a tenant, then refinance into DSCR for long-term financing once cash flow exists.

Question 5

Which loan works for vacation rentals near Yosemite?

Accepted Answer

DSCR can work if you document short-term rental income. Hard money fits initial purchase, but you'll need an exit plan within 6-24 months.

DSCR Loans vs Hard Money Loans in Mariposa: Which Investor Loan Fits Your Strategy?

DSCR Loans vs Hard Money Loans in Mariposa: Which Investor Loan Fits Your Strategy?