Question 1

Can I refinance hard money into DSCR after renovations?

Accepted Answer

Yes, that's the standard exit strategy. Once the property is rent-ready and tenants are in place, DSCR lenders will refinance based on the new rental income.

Question 2

Do DSCR loans require reserves like conventional loans?

Accepted Answer

Most lenders want 6 to 12 months of mortgage payments in reserves. That's insurance against vacancies. The exact amount depends on your credit score and property count.

Question 3

What's the typical down payment for each loan type?

Accepted Answer

DSCR usually requires 20 to 25 percent down. Hard money can go lower — sometimes 10 to 15 percent — but you'll pay higher rates for thinner equity.

Question 4

Which loan works better for first-time San Bruno investors?

Accepted Answer

DSCR if you're buying turnkey rentals with existing income. Hard money assumes you can manage construction timelines and exit within 12 to 18 months.

Question 5

Do hard money lenders check credit at all?

Accepted Answer

They check it, but poor credit won't kill the deal if the property value and exit strategy are solid. Expect higher rates if your score is under 650.

DSCR Loans vs Hard Money Loans in San Bruno: Which Investor Loan Fits Your Deal?