Question 1

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

Accepted Answer

Not easily. DSCR lenders want the property rent-ready at closing. Hard money handles distressed acquisitions better.

Question 2

How fast does hard money actually close?

Accepted Answer

Some hard money lenders close in 5–10 business days. Speed depends on the lender and how clean your deal is.

Question 3

Do DSCR loans require a minimum credit score?

Accepted Answer

Most DSCR lenders want at least a 620. Some go lower, but rates climb fast below that threshold.

Question 4

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

Accepted Answer

Yes — this is a common exit strategy. Stabilize the property, get it rented, then refinance into a 30-year DSCR loan.

Question 5

Which loan has lower down payment requirements?

Accepted Answer

DSCR typically requires 20–25% down. Hard money varies but often lends up to 65–70% of after-repair value.

Question 6

Are both loans available for Hayward multi-family properties?

Accepted Answer

Yes. Both loan types work on multi-family. DSCR lenders often go up to 8 units; hard money lenders vary by deal.

DSCR Loans vs Hard Money Loans in Hayward, CA