Question 1

Can I use DSCR loans on properties that need renovation?

Accepted Answer

Most DSCR lenders want rent-ready properties. They underwrite on current or projected rental income, which means the property needs to be habitable and leasable at closing.

Question 2

How much does hard money really cost compared to DSCR?

Accepted Answer

Hard money rates run 9-14% plus 2-4 points upfront. DSCR sits around 7-9% with lower closing costs. On a short hold, hard money costs significantly more.

Question 3

Do I need good credit for either loan type in Antioch?

Accepted Answer

DSCR lenders typically want 640+ credit scores. Hard money cares less about credit, focusing instead on property value and your exit strategy.

Question 4

Can I convert a hard money loan to DSCR after renovation?

Accepted Answer

Yes, this is a common strategy. Use hard money to acquire and renovate, then refinance into DSCR once the property generates rental income.

Question 5

Which loan has faster approval in Contra Costa County?

Accepted Answer

Hard money closes in 7-14 days with minimal documentation. DSCR takes 21-30 days because lenders verify rental income and run property appraisals.

DSCR Loans vs Hard Money Loans in Antioch: Which Investor Loan Fits Your Deal?