Question 1

Can I refinance from hard money to DSCR on the same Benicia property?

Accepted Answer

Yes, most investors use hard money to buy and renovate, then refinance to DSCR once the property is rent-ready. You'll need 6-12 months of rental history for the best DSCR terms.

Question 2

Which loan has stricter credit requirements?

Accepted Answer

DSCR loans typically require 660+ credit and review your full profile. Hard money lenders focus on the deal and accept lower scores, often 600 or below with more equity.

Question 3

Do both loans work for multifamily properties in Benicia?

Accepted Answer

Both fund 2-4 unit properties. DSCR works better for stabilized multifamily. Hard money suits value-add multifamily deals where you're renovating units and raising rents.

Question 4

What's the real cost difference on a $400K Benicia investment property?

Accepted Answer

DSCR at 7% costs roughly $2,660/month. Hard money at 12% for one year costs $4,000/month plus $8,000-$20,000 in upfront points. That's $33,000+ more for a 12-month hard money hold.

Question 5

Can I use hard money for a Benicia rental I plan to keep long-term?

Accepted Answer

Only as bridge financing. Hard money's high cost and short term make it unsustainable for buy-and-hold. Use it to acquire, then refinance to DSCR or conventional within 12-18 months.

DSCR Loans vs Hard Money Loans: Which Investor Option Fits Your Benicia Property Deal?