Question 1

Can I use a DSCR loan on a short-term rental in Buellton?

Accepted Answer

Yes. Many lenders accept Airbnb or VRBO income. Some use market rent estimates instead of actual lease income.

Question 2

How fast does hard money close?

Accepted Answer

Most hard money loans close in 5 to 10 business days. Some lenders move faster with a clean title and clear exit strategy.

Question 3

Do I need good credit for either loan?

Accepted Answer

DSCR lenders typically want 620 or higher. Hard money lenders are more flexible — the property carries most of the weight.

Question 4

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

Accepted Answer

Yes. That's a common strategy. Rehab with hard money, stabilize the rental, then refi into a long-term DSCR loan.

Question 5

Which loan has lower rates?

Accepted Answer

DSCR rates are lower. Hard money rates are significantly higher due to short terms and speed. Rates vary by borrower profile and market conditions.

Question 6

Do these loans work for multi-unit properties?

Accepted Answer

Both can work on multi-unit deals. DSCR lenders often prefer stabilized, income-producing properties with existing tenants.

DSCR Loans vs Hard Money Loans in Buellton