Question 1

Can I use a DSCR loan on a fixer-upper?

Accepted Answer

Generally no. DSCR lenders need a rentable property with documented income. Hard money is the better fit for distressed or vacant properties.

Question 2

How fast does hard money close?

Accepted Answer

Many hard money deals close in 5 to 10 business days. That's a major edge in fast-moving markets like Los Gatos.

Question 3

Do DSCR loans require a minimum credit score?

Accepted Answer

Most DSCR lenders want 680 or higher. Some go down to 660 with a stronger DSCR ratio and larger down payment.

Question 4

Can I refinance hard money into a DSCR loan?

Accepted Answer

Yes — and many investors plan for this from day one. Once the property is rented and stabilized, a DSCR refi replaces the hard money.

Question 5

Which loan has lower rates?

Accepted Answer

DSCR loans carry lower rates than hard money. Rates vary by borrower profile and market conditions for both loan types.

Question 6

What down payment do these loans require?

Accepted Answer

DSCR loans typically require 20-25% down. Hard money lenders often lend up to 65-70% of after-repair value.

DSCR vs Hard Money Loans in Los Gatos