Question 1

Can I use hard money to buy a rental property in Daly City?

Accepted Answer

Yes, but it's expensive for long-term holds. Most investors use hard money for acquisitions, then refinance into a DSCR loan within 6-12 months to lower their rate and payment.

Question 2

Which loan is easier to qualify for in San Mateo County?

Accepted Answer

Hard money is typically easier since it focuses on property value rather than income. DSCR loans require the property to generate sufficient rental income to cover the mortgage payment.

Question 3

Do both loans require investment property experience?

Accepted Answer

DSCR lenders often accept first-time investors if the numbers work. Hard money lenders may require a clear exit strategy but typically care more about the deal than your experience level.

Question 4

Can I get a DSCR loan if the property needs repairs?

Accepted Answer

Most DSCR lenders require properties in rent-ready condition. For fixer properties, start with hard money to complete renovations, then refinance into a DSCR loan.

Question 5

What down payment do these loans require?

Accepted Answer

DSCR loans typically require 20-25% down. Hard money lenders often want 25-30% down or equity in the property to protect their position.

DSCR Loans vs Hard Money Loans in Daly City: Which Investor Loan Fits Your Strategy?