Question 1

Can I use a DSCR loan to buy a vacant property?

Accepted Answer

No. DSCR lenders need rental income to calculate coverage. A vacant property has no income to qualify against.

Question 2

How fast can hard money close in Palo Alto?

Accepted Answer

Many hard money lenders close in 5–10 business days. Some can move faster if the deal is clean and title is clear.

Question 3

Do hard money loans require a minimum credit score?

Accepted Answer

Some lenders check credit, but it rarely kills the deal. Property value and equity position matter far more to hard money lenders.

Question 4

What DSCR ratio do lenders want?

Accepted Answer

Most want a DSCR of 1.0 or above. A few lenders allow below 1.0 with a stronger down payment or lower LTV.

Question 5

Can I refinance from hard money into a DSCR loan?

Accepted Answer

Yes — this is a common investor move. Once the property is leased and stabilized, DSCR financing replaces the hard money bridge.

Question 6

Which loan has lower rates in Palo Alto?

Accepted Answer

DSCR loans carry significantly lower rates than hard money. Rates vary by borrower profile and market conditions.

DSCR Loans vs Hard Money Loans in Palo Alto