Question 1

Can I use a DSCR loan on a short-term rental in Capitola?

Accepted Answer

Yes, many DSCR lenders accept short-term rental income. They typically use a market rent analysis or historical Airbnb data to qualify.

Question 2

How fast does hard money funding typically close?

Accepted Answer

Most hard money loans close in 5 to 10 business days. Speed depends on the lender and how quickly title and appraisal clear.

Question 3

What credit score do I need for each loan?

Accepted Answer

DSCR loans generally require a 620 or higher. Hard money lenders often go lower — some approve deals with scores under 600.

Question 4

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

Accepted Answer

Yes, and this is a common strategy. Acquire with hard money, stabilize the rental, then refinance into a long-term DSCR loan.

Question 5

Which loan has lower rates?

Accepted Answer

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

Question 6

Do either of these loans require income documentation?

Accepted Answer

Neither loan verifies personal income. DSCR qualifies on rent. Hard money qualifies on property value and equity.

DSCR vs Hard Money Loans in Capitola, CA