Question 1

Can I use a DSCR loan on a property that needs work?

Accepted Answer

DSCR lenders want a rent-ready property. If it needs major work, hard money is the right first step.

Question 2

How fast does hard money close?

Accepted Answer

Many hard money lenders close in 5 to 10 days. That speed is why investors use them in competitive markets.

Question 3

Do DSCR loans require a down payment?

Accepted Answer

Yes. Most DSCR lenders require 20–25% down on investment properties. Rates vary by borrower profile and market conditions.

Question 4

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

Accepted Answer

Yes, and it's a common strategy. Stabilize the property first, then refinance into long-term DSCR financing.

Question 5

Which loan is harder to qualify for?

Accepted Answer

DSCR has more underwriting criteria — credit score, DSCR ratio, property condition. Hard money approval is mostly equity-based.

Question 6

Are both loans available for Morgan Hill properties?

Accepted Answer

Yes. We work with lenders who write both loan types in Santa Clara County. Loan fit depends on your specific deal.

DSCR vs Hard Money Loans in Morgan Hill