Question 1

Can I start with hard money then refinance to DSCR?

Accepted Answer

Yes, that's a common strategy. Fix the property with hard money, get tenants in, then refinance to DSCR for long-term hold. We structure both loans from the start.

Question 2

Which loan works for a Gilroy duplex I want to rent out?

Accepted Answer

DSCR if it's rent-ready and cash flows above 1.0 ratio. Hard money if it needs work first. Check if current rents cover the DSCR payment before choosing.

Question 3

Do DSCR loans require reserves like conventional loans?

Accepted Answer

Yes, most DSCR lenders want 6-12 months of reserves per property. Hard money typically requires less since the term is so short.

Question 4

What credit score do I need for each loan type?

Accepted Answer

DSCR typically requires 620 minimum. Hard money can go as low as 550 if you have enough equity and a solid exit plan.

Question 5

Can I use hard money to buy multiple Gilroy properties at once?

Accepted Answer

Yes, if you have equity and an exit strategy for each. Hard money lenders evaluate each property individually. Portfolio size matters less than deal quality.

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