Question 1

Can I use a DSCR loan to flip a property?

Accepted Answer

No. DSCR loans are built for rentals, not short holds. Use hard money for flips, then refinance into a DSCR loan if you decide to hold.

Question 2

Do hard money lenders check my credit?

Accepted Answer

Most do a light credit review, but it's not the deciding factor. Property value and your exit strategy carry far more weight.

Question 3

What DSCR ratio do lenders want?

Accepted Answer

Most lenders want a ratio of 1.0 or higher. Some will go down to 0.75, but expect a higher rate and tighter terms.

Question 4

How fast can hard money close in Los Altos Hills?

Accepted Answer

Many hard money lenders close in 7 to 14 days. Some can move faster with a clean deal and clear title.

Question 5

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

Accepted Answer

Yes — this is a common strategy. Fix the property, stabilize the rent, then refinance into a long-term DSCR loan.

Question 6

Which loan has lower rates?

Accepted Answer

DSCR loans carry lower rates than hard money. Hard money's higher cost reflects the speed and flexibility it provides. Rates vary by borrower profile and market conditions.

DSCR Loans vs Hard Money Loans in Los Altos Hills