Question 1

Can I refinance from hard money to DSCR?

Accepted Answer

Yes, it's common. You buy with hard money, complete renovations, get a tenant in place, then refinance to DSCR for long-term holding. Just budget for two sets of closing costs.

Question 2

Which loan has easier credit requirements?

Accepted Answer

Hard money cares less about credit—some lenders approve 580+ scores. DSCR typically requires 640 minimum, with better rates at 680+. Property matters more than credit for hard money.

Question 3

Do both loans work for Concord multifamily properties?

Accepted Answer

Yes, both fund 2-4 unit properties. DSCR works well for stabilized multifamily with tenants. Hard money funds value-add multifamily plays where you're renovating units and raising rents.

Question 4

What's the minimum down payment for each?

Accepted Answer

DSCR loans need 20-25% down. Hard money varies—usually 20-35% depending on the deal and your experience. Fix-and-flip projects often require more skin in the game.

Question 5

Can I use hard money for a primary residence?

Accepted Answer

No, hard money is investment property only. DSCR is also for investment properties. Neither works for owner-occupied homes—you'd need conventional or FHA for that.

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