Question 1

Can I use a DSCR loan on a fixer-upper?

Accepted Answer

No. DSCR lenders require the property to be habitable and rent-ready. A hard money loan is the right tool for distressed acquisitions.

Question 2

What credit score do I need for hard money?

Accepted Answer

Most hard money lenders don't have a firm minimum. They focus on the property's value and your exit plan over your credit score.

Question 3

How fast does hard money close compared to DSCR?

Accepted Answer

Hard money can close in 3–7 days. DSCR loans typically take 2–4 weeks due to property income analysis and standard underwriting.

Question 4

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

Accepted Answer

Yes — and that's a common strategy. Acquire and renovate with hard money, then refinance into a DSCR loan once the property is leased.

Question 5

Which loan has lower interest rates?

Accepted Answer

DSCR rates are meaningfully lower than hard money rates. Rates vary by borrower profile and market conditions, but the gap is significant.

Question 6

Do either of these loans require personal income verification?

Accepted Answer

Neither does. DSCR qualifies on rental income. Hard money qualifies on asset value. Both skip traditional income documentation entirely.

DSCR Loans vs Hard Money Loans in Taft, CA