Question 1

Can I use a DSCR loan on a property that needs repairs?

Accepted Answer

Not usually. DSCR lenders want the property rentable at closing. Use hard money for the rehab, then refinance into DSCR once it's stabilized.

Question 2

How fast does hard money actually close?

Accepted Answer

Fast lenders can close in 5-10 business days. It depends on the lender and how clean your deal is going in.

Question 3

Do DSCR loans show up on my personal credit?

Accepted Answer

Yes. DSCR loans are still mortgages and report to credit bureaus. Hard money terms vary by lender — ask before you sign.

Question 4

What credit score do I need for each loan?

Accepted Answer

DSCR lenders typically want 620-660 minimum. Hard money lenders focus more on the deal itself and are often more flexible on credit.

Question 5

Can I flip properties in Crescent City with a DSCR loan?

Accepted Answer

No. DSCR is for income-producing rentals, not flips. Hard money is the right tool for a short-term flip exit.

Question 6

What happens when my hard money loan term ends?

Accepted Answer

You either sell the property or refinance out. A DSCR loan is one of the most common exits once the asset is rent-ready.

DSCR vs Hard Money Loans in Crescent City, CA