Question 1

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

Accepted Answer

Yes. Many investors do exactly that. Once the property is stabilized with rental income, a DSCR loan replaces the hard money bridge.

Question 2

Which loan has a higher minimum credit score?

Accepted Answer

DSCR loans typically require a 620–680 credit score. Hard money lenders often go lower, sometimes with no minimum, focusing on the asset instead.

Question 3

Do DSCR loans work for Airbnb rentals in Fort Bragg?

Accepted Answer

Yes. Many DSCR lenders accept short-term rental income. They may use AirDNA data or lease history to calculate the qualifying income.

Question 4

What down payment does each loan require?

Accepted Answer

DSCR loans typically require 20–25% down. Hard money lenders often require 25–35%, sometimes more on heavy rehab projects.

Question 5

How fast does hard money close compared to DSCR?

Accepted Answer

Hard money can close in 5–10 business days. DSCR loans typically take 3–4 weeks, similar to a conventional mortgage timeline.

Question 6

Which loan costs more over time?

Accepted Answer

Hard money costs more. Rates are significantly higher and terms are short. DSCR loans are built for long holds at lower long-term cost.

DSCR Loans vs Hard Money Loans in Fort Bragg, CA