Question 1

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

Accepted Answer

Most DSCR lenders want the property rent-ready at closing. If it needs work, start with hard money and refinance to DSCR once it's stabilized and producing income.

Question 2

What credit score do I need for each loan type?

Accepted Answer

DSCR lenders typically want 660-680 minimum. Hard money lenders care less about credit and more about the property's value and your exit strategy.

Question 3

How much cash do I need to bring to closing?

Accepted Answer

DSCR loans require 20-25% down. Hard money loans typically finance 65-75% of purchase price, so you'll need 25-35% down plus closing costs and points.

Question 4

Can I use hard money on a property I plan to rent long-term?

Accepted Answer

You can, but it's expensive. Hard money rates run 8-12% with short terms. Once the property is rent-ready, refinance to a DSCR loan for better rates and a 30-year term.

Question 5

Do these loans work for properties in border areas like Calexico?

Accepted Answer

Yes. Both DSCR and hard money lenders finance investment properties throughout Imperial County. The property's income or value matters more than its specific location.

DSCR Loans vs Hard Money Loans in Calexico: Which Investor Loan Fits Your Deal?