Question 1

Can I use DSCR loans for short-term rentals in Coronado?

Accepted Answer

Many DSCR lenders accept documented short-term rental income for qualification. You'll need rental history or market analysis showing the property generates sufficient cash flow to cover debt service.

Question 2

How quickly can hard money loans close in Coronado?

Accepted Answer

Hard money loans can close in 5-10 business days when documentation is complete. Some lenders fund even faster for experienced investors with clear exit strategies and significant equity.

Question 3

Which loan type requires better credit scores?

Accepted Answer

DSCR loans typically require minimum credit scores of 620-680. Hard money lenders may approve borrowers with lower scores since they focus primarily on property value and equity position.

Question 4

Can I refinance from hard money into a DSCR loan?

Accepted Answer

Yes, many investors use this strategy. Complete renovations, establish rental income, then refinance into a DSCR loan for lower long-term rates and extended repayment terms.

Question 5

What are typical interest rates for each loan type?

Accepted Answer

Rates vary by borrower profile and market conditions. DSCR loans typically range 1-3% above conventional rates, while hard money loans often charge 8-15% reflecting their short-term nature and higher risk.

DSCR Loans vs Hard Money Loans in Coronado: Which Investment Strategy Fits Your Goals?