Question 1

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

Accepted Answer

Yes, if the lender allows short-term rental income in their DSCR calculation. You'll need to document Airbnb or VRBO income with tax returns or a market rent analysis.

Question 2

Do hard money lenders require personal income verification?

Accepted Answer

No. Hard money approval focuses on property value, equity position, and your exit strategy. Most lenders don't pull tax returns or verify employment.

Question 3

What credit score do I need for each loan type?

Accepted Answer

DSCR loans typically require 640-680 minimum. Hard money lenders may approve borrowers with 600+ scores if the deal has strong equity and a clear exit plan.

Question 4

Can I refinance hard money into a DSCR loan?

Accepted Answer

Yes. Many investors use hard money for acquisition and rehab, then refinance into DSCR financing once the property is rent-ready and stabilized.

Question 5

Which loan type works for properties needing major work?

Accepted Answer

Hard money. DSCR lenders require properties in rentable condition with verified income. Hard money funds based on after-repair value, making it ideal for gut rehabs.

Question 6

How much cash do I need for each option?

Accepted Answer

DSCR loans require 20-25% down plus reserves. Hard money needs 25-35% down, rehab budget, plus points and fees at closing.

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