Question 1

Can I use DSCR for a property that needs renovation?

Accepted Answer

Only for light cosmetic work. DSCR lenders need current rent comps, so major rehabs requiring permits don't qualify until the property is rent-ready and appraised.

Question 2

What credit score do I need for hard money in Redwood City?

Accepted Answer

Most hard money lenders accept 600+ credit, some go lower. The property and your exit plan matter more than your score for this asset-based lending.

Question 3

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

Accepted Answer

Yes, that's a common strategy. Complete the rehab, establish rent, then refinance into a 30-year DSCR loan. You'll need six months of payment history on the hard money loan.

Question 4

Do DSCR rates differ much from conventional in San Mateo County?

Accepted Answer

Expect 1-2% higher than conventional rates. You're paying for the flexibility of qualifying without W-2 income. Rates vary by borrower profile and market conditions.

Question 5

How much can I borrow with hard money in Redwood City?

Accepted Answer

Typically 65-75% of after-repair value. On a property worth $1.5M fixed up, you might get $1M to $1.125M, covering purchase and rehab costs combined.

DSCR Loans vs Hard Money Loans in Redwood City: Which Investor Loan Fits Your Deal?