Question 1

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

Accepted Answer

Yes, many DSCR lenders allow STR income. You'll typically need documented rental history or a market rent analysis to support the income.

Question 2

How fast can a hard money loan close?

Accepted Answer

Some hard money lenders fund in 5 to 10 business days. Speed depends on the lender and how quickly you supply property docs.

Question 3

What credit score do I need for each loan?

Accepted Answer

DSCR lenders typically want 620 or higher. Hard money lenders are more flexible — some approve deals with scores below 600.

Question 4

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

Accepted Answer

Yes. This is a common investor playbook — renovate with hard money, then refi into a DSCR loan once the property is rented and stabilized.

Question 5

Which loan has lower rates?

Accepted Answer

DSCR loans carry lower rates than hard money in nearly every case. Rates vary by borrower profile and market conditions.

Question 6

Do either of these loans require income documentation?

Accepted Answer

Neither requires personal income verification. DSCR uses rental income; hard money uses property value as the primary qualifier.

DSCR vs Hard Money Loans in Nevada City, CA