Question 1

Can I use hard money then refinance into DSCR?

Accepted Answer

Yes, this is common. Fix the property with hard money, lease it, then refinance into a DSCR loan once you have rent history and updated value.

Question 2

Which loan type closes faster in Watsonville?

Accepted Answer

Hard money closes in 3-7 days. DSCR takes 2-3 weeks. Both skip employment verification, but DSCR requires rent analysis and full appraisal.

Question 3

Do I need rental income history for DSCR?

Accepted Answer

No. Lenders use market rents from the appraisal. An active lease helps, but they'll approve based on what comparable properties rent for.

Question 4

What credit score do these loans require?

Accepted Answer

DSCR lenders want 620-680 minimum. Hard money lenders care more about equity and may approve scores in the 500s if the deal makes sense.

Question 5

Can I use these for primary residences?

Accepted Answer

No. Both are investment property loans only. DSCR requires the property to be rented. Hard money is for purchase and rehab, not owner occupancy.

DSCR Loans vs Hard Money Loans in Watsonville: Which Fits Your Investment Strategy?