Question 1

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

Accepted Answer

Yes — that's a common strategy. Renovate with hard money, stabilize the rental, then refinance into a 30-year DSCR loan.

Question 2

What credit score do I need for a DSCR loan?

Accepted Answer

Most lenders want 620 at minimum. Better scores get better pricing. Hard money lenders are more flexible on credit.

Question 3

How fast can hard money close in San Juan Capistrano?

Accepted Answer

Many hard money lenders close in 5 to 10 days. That speed is the main reason investors use them on competitive deals.

Question 4

Do DSCR loans work for short-term rentals?

Accepted Answer

Some lenders accept Airbnb income projections. Others require long-term lease history. It depends on the lender.

Question 5

What DSCR ratio do lenders require?

Accepted Answer

Most lenders require a ratio of 1.0 or higher. That means rental income equals or exceeds the monthly mortgage payment.

Question 6

Which loan has lower rates — DSCR or hard money?

Accepted Answer

DSCR loans carry lower rates. Hard money costs more because of short terms and speed. Rates vary by borrower profile and market conditions.

DSCR vs Hard Money Loans in San Juan Capistrano