Question 1

Can I use a DSCR loan on a vacant property?

Accepted Answer

Usually not. DSCR lenders want a lease or market rent appraisal showing the property can cover the payment. Vacant distressed homes need hard money first.

Question 2

What credit score do I need for each loan?

Accepted Answer

DSCR lenders typically want 620 or higher. Hard money lenders often go lower — some approve deals with scores under 600 if the deal is strong.

Question 3

How fast does hard money close vs DSCR?

Accepted Answer

Hard money can close in 5–10 days. DSCR loans typically take 3–4 weeks due to appraisal and underwriting requirements.

Question 4

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

Accepted Answer

Yes — and that's a common strategy. Rehab with hard money, stabilize the rental, then refi into a DSCR loan for long-term financing.

Question 5

Do either of these loans require tax returns?

Accepted Answer

No. Both are non-QM loans that skip personal income documentation. That's what makes them attractive to self-employed and portfolio investors.

Question 6

Which loan works better for Albany multifamily properties?

Accepted Answer

DSCR handles stabilized 2–4 unit rentals well. Hard money fits a duplex that needs gut rehab before it's leasable.

DSCR vs Hard Money Loans in Albany, CA