Question 1

Can I use a hard money loan and then refinance into DSCR?

Accepted Answer

Yes. This is a common strategy. Use hard money to acquire or rehab, then refinance into a DSCR loan once the property is stabilized.

Question 2

What credit score do I need for a DSCR loan?

Accepted Answer

Most DSCR lenders want 620 or higher. Some go lower with stronger property cash flow or a larger down payment.

Question 3

Does hard money require an appraisal?

Accepted Answer

Usually yes, but the process is faster than conventional. Many hard money lenders use a drive-by or desktop valuation to speed things up.

Question 4

Which loan closes faster in Union City?

Accepted Answer

Hard money wins on speed. It can close in days. DSCR typically takes 2–4 weeks depending on the lender and property type.

Question 5

Can I use DSCR on a property I'm renovating?

Accepted Answer

No. DSCR requires the property to be rent-ready and generating income. Use hard money for the rehab, then convert to DSCR.

Question 6

Do both loans require a down payment?

Accepted Answer

Yes. DSCR typically requires 20–25% down. Hard money varies but often requires 20–35% depending on the deal and lender.

DSCR vs Hard Money Loans in Union City, CA