Question 1

Can I use a DSCR loan on a new rental purchase in Colton?

Accepted Answer

Yes — as long as the projected rent meets the lender's DSCR requirement. Most lenders accept a lease agreement or appraisal rent schedule.

Question 2

How fast can a hard money loan close?

Accepted Answer

Many hard money lenders close in 5 to 10 business days. Speed depends on title, appraisal, and how fast you move on paperwork.

Question 3

What DSCR ratio do lenders typically require?

Accepted Answer

Most want 1.0 or above — rent must at least equal the monthly payment. Some lenders go to 0.75 DSCR with a higher rate.

Question 4

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

Accepted Answer

Yes, and it's a common strategy. Once the property is rented and stabilized, a DSCR refi pays off the hard money and locks in long-term financing.

Question 5

Do hard money lenders check credit?

Accepted Answer

They look at it, but it's rarely a dealbreaker. The property's value and your exit strategy matter far more than your credit score.

Question 6

Which loan has lower rates — DSCR or hard money?

Accepted Answer

DSCR rates are lower. Hard money charges a premium for speed and flexibility. Rates vary by borrower profile and market conditions.

DSCR Loans vs Hard Money Loans in Colton, CA