Question 1

Can I use DSCR loans for fix-and-flip properties in Hollister?

Accepted Answer

No. DSCR loans require properties generating rental income at closing. Use hard money for renovations, then refinance to DSCR once it's rented.

Question 2

How fast can hard money close on a San Benito County property?

Accepted Answer

Most hard money lenders fund in 5-7 business days. Some close in 3 days if the deal is clean and you have existing equity.

Question 3

Do DSCR loans require an appraisal in Hollister?

Accepted Answer

Yes. Lenders order full appraisals and rent comparables to verify the debt service coverage ratio. The property must appraise and show positive cash flow.

Question 4

What credit score do I need for hard money loans?

Accepted Answer

Most hard money lenders accept 580+ credit since they're lending against equity. Some approve lower scores if the loan-to-value ratio is conservative.

Question 5

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

Accepted Answer

Yes, that's the standard exit strategy. Finish renovations, stabilize rent, then refinance to a lower DSCR rate for long-term hold.

DSCR vs Hard Money Loans: Which Fits Your Hollister Investment Strategy?