Question 1

Can I use DSCR loans for a property that needs repairs?

Accepted Answer

DSCR lenders want properties in rentable condition. Minor repairs work, but major renovations require hard money first, then refinance to DSCR once stabilized.

Question 2

What credit score do I need for each loan type?

Accepted Answer

DSCR loans typically require 660+ credit. Hard money lenders care more about equity and exit strategy, often approving scores as low as 600.

Question 3

How fast can hard money close in Firebaugh?

Accepted Answer

Most hard money lenders fund in 5-10 days. Some can close in 3 days if the deal is straightforward and appraisal turns quickly.

Question 4

Do I need an LLC for either loan type?

Accepted Answer

DSCR loans allow personal or LLC ownership. Hard money lenders are flexible with entity structure since they focus on the asset and exit plan.

Question 5

Can I refinance from hard money to DSCR?

Accepted Answer

Yes, this is common. Once renovations are done and the property is rented, refinance into DSCR for lower rates and long-term financing.

DSCR Loans vs Hard Money Loans in Firebaugh: Which Rental Strategy Wins?