Question 1

Can I refinance from hard money into a DSCR loan?

Accepted Answer

Yes. That is a common exit strategy. Once the property is stabilized with rental income, DSCR lenders can refinance you out of hard money.

Question 2

Does DSCR work on vacant properties?

Accepted Answer

Usually not. Most DSCR lenders want a signed lease or proven rent history. A vacant property is hard to underwrite on rental income alone.

Question 3

How fast can hard money close in Portola?

Accepted Answer

Fast closings of 5-10 business days are possible. Speed depends on the lender and how quickly the appraisal or valuation gets done.

Question 4

Is my credit score important for either loan?

Accepted Answer

DSCR lenders typically require 620 or higher. Hard money lenders focus more on property value, though better credit still helps your rate.

Question 5

Which loan has lower rates?

Accepted Answer

DSCR rates are substantially lower than hard money rates. Rates vary by borrower profile and market conditions, but the gap is significant.

Question 6

Can I use hard money for a rental property long-term?

Accepted Answer

No. Hard money terms are 6-24 months. Holding a rental on hard money long-term would be extremely costly. Refinance into DSCR instead.

DSCR vs Hard Money Loans in Portola, CA