Question 1

Can I use hard money to buy a rental, then refinance into DSCR?

Accepted Answer

Yes. Many investors do exactly that. Buy and rehab with hard money, then refinance into a DSCR loan once the property is stabilized and rented.

Question 2

What credit score do I need for a DSCR loan in Red Bluff?

Accepted Answer

Most DSCR lenders require a 620 minimum. Some go lower, but the rate will be higher. Rates vary by borrower profile and market conditions.

Question 3

Do hard money lenders check credit at all?

Accepted Answer

Some do a soft pull, but credit is rarely the deciding factor. The deal's equity and the property's value matter far more.

Question 4

What DSCR ratio do lenders typically require?

Accepted Answer

Most lenders want a DSCR of 1.0 or above, meaning rent covers the full mortgage payment. Some lenders will go below 1.0 at a higher rate.

Question 5

Which loan type has higher upfront costs?

Accepted Answer

Hard money loans typically carry higher origination points and fees. DSCR loans are more competitively priced for longer-term financing.

Question 6

Can I use either loan for a multifamily property in Tehama County?

Accepted Answer

Yes, both loan types can work on small multifamily properties. DSCR lenders commonly go up to 4 units; hard money lenders vary by deal size.

DSCR vs Hard Money Loans in Red Bluff, CA