Question 1

Can I use DSCR for a Moraga flip property?

Accepted Answer

No. DSCR requires rental income and a long-term hold. Flips need hard money or cash because you're selling within months, not renting for years.

Question 2

What credit score do I need for each loan type?

Accepted Answer

DSCR typically requires 620 minimum, sometimes 640 depending on loan-to-value. Hard money lenders care less about credit — some approve borrowers in the 500s if the deal has enough equity.

Question 3

Which loan costs less in total?

Accepted Answer

DSCR costs less if you're holding past 18 months. Hard money's higher rate and points make it expensive for long holds, but cheaper than waiting months for traditional approval on time-sensitive deals.

Question 4

Do either of these loans require tax returns?

Accepted Answer

Neither requires tax returns or income verification. DSCR underwrites to property cash flow. Hard money underwrites to asset value and exit strategy.

Question 5

Can I refinance from hard money to DSCR?

Accepted Answer

Yes, this is standard practice. Complete your rehab, place a tenant, wait for 6-12 months of seasoning, then refinance into DSCR at a lower rate for the long-term hold.

DSCR Loans vs Hard Money Loans in Moraga: Which Fits Your Investment Strategy?