Question 1

Can I use a DSCR loan for a fix-and-flip?

Accepted Answer

No. DSCR loans require the property to generate rental income. Fix-and-flip deals need hard money or a bridge loan.

Question 2

How fast does hard money close?

Accepted Answer

Many hard money deals close in 5 to 14 days. Speed is the main reason investors pay the higher rate.

Question 3

What DSCR ratio do lenders want?

Accepted Answer

Most lenders want a ratio of 1.0 or higher — meaning rent covers the full mortgage payment. Some allow below 1.0 with more down.

Question 4

Do hard money loans check my credit?

Accepted Answer

Some do, some don't. Asset value is the priority. A weak credit score won't kill most hard money deals in a strong market.

Question 5

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

Accepted Answer

Yes — that's a common exit strategy. Stabilize the property, get it rented, then refi into a long-term DSCR loan.

Question 6

Which loan works better for Milpitas multifamily?

Accepted Answer

DSCR fits buy-and-hold multifamily well. Hard money works if you're acquiring distressed units to renovate and then refi or sell.

DSCR vs Hard Money Loans in Milpitas