Question 1

Can I refinance a hard money loan into a DSCR loan?

Accepted Answer

Yes. Many investors do exactly that. Stabilize the property, get it rented, then refinance into a DSCR loan for long-term hold financing.

Question 2

Which loan closes faster in Blue Lake?

Accepted Answer

Hard money wins on speed. Some lenders close in under two weeks. DSCR loans typically take 21–30 days.

Question 3

Do both loans require a down payment?

Accepted Answer

Yes. DSCR loans typically require 20–25% down. Hard money lenders usually want 25–35% of the purchase price or ARV.

Question 4

What credit score do I need for each?

Accepted Answer

DSCR lenders typically want 620 or higher. Hard money lenders are more flexible — some approve below 600 if the deal is strong.

Question 5

Can I use either loan for a multi-unit property?

Accepted Answer

DSCR loans work well for 2–4 unit and small multifamily properties. Hard money can cover multifamily too, especially for value-add acquisitions.

Question 6

Which loan has lower rates?

Accepted Answer

DSCR loans carry lower rates. Hard money rates reflect short-term bridge risk. Rates vary by borrower profile and market conditions.

DSCR vs Hard Money Loans in Blue Lake, CA