Question 1

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

Accepted Answer

No. DSCR lenders want rent-ready properties. Use hard money first, renovate, then refinance into a DSCR loan.

Question 2

How fast does hard money close compared to DSCR?

Accepted Answer

Hard money can close in days. DSCR loans typically take 2–4 weeks with standard underwriting.

Question 3

Do either of these loans check my personal income?

Accepted Answer

Neither requires W-2s or tax returns. DSCR uses rent income; hard money focuses on property value.

Question 4

What credit score do I need for a DSCR loan in Fortuna?

Accepted Answer

Most DSCR lenders want at least a 620. Some hard money lenders set a lower bar or skip it entirely.

Question 5

Can I hold a hard money loan long-term?

Accepted Answer

No. Hard money terms run 6–24 months. Holding past maturity triggers default. Plan your exit before you close.

Question 6

Which loan works better for small multifamily in Fortuna?

Accepted Answer

DSCR handles 1–4 unit rentals well. For value-add or distressed multifamily, start with hard money and refinance later.

DSCR Loans vs Hard Money Loans in Fortuna, CA