Question 1

Can I use a DSCR loan to buy a fixer-upper in Berkeley?

Accepted Answer

Not usually. DSCR lenders require the property to be rent-ready. Use hard money to acquire and renovate, then refi into DSCR.

Question 2

How fast can hard money close in Berkeley?

Accepted Answer

Many hard money lenders close in 5 to 10 business days. That speed is exactly why flippers pay the higher rate.

Question 3

Do DSCR loans check my personal income?

Accepted Answer

No. The property's rent-to-debt ratio drives approval. Your tax returns stay out of it.

Question 4

What credit score do I need for each loan?

Accepted Answer

DSCR loans typically require 620–680 minimum. Hard money lenders often go lower — some care more about the asset than your score.

Question 5

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

Accepted Answer

Yes — and this is a common Berkeley investor strategy. Stabilize the property, get it leased, then refi into long-term DSCR financing.

Question 6

Which loan has lower interest rates?

Accepted Answer

DSCR loans carry meaningfully lower rates than hard money. Hard money pricing reflects short loan terms and high-risk collateral. Rates vary by borrower profile and market conditions.

DSCR vs Hard Money Loans in Berkeley, CA