Question 1

Can I use DSCR for a property that needs repairs?

Accepted Answer

No. DSCR requires the property to be rent-ready with current or projected income. Use hard money for repairs, then refinance to DSCR.

Question 2

Which loan is cheaper over 12 months?

Accepted Answer

DSCR costs less if you hold beyond 6 months. Hard money's high rates and points make it expensive for holds longer than your flip timeline.

Question 3

Do both loans work for multi-unit properties in Corcoran?

Accepted Answer

Yes. DSCR commonly funds 2-4 units based on total rental income. Hard money lenders also fund small multifamily for rehab projects.

Question 4

Can I avoid personal income verification with both?

Accepted Answer

Yes. Neither requires tax returns or W-2s. DSCR qualifies on property income while hard money focuses on asset value and equity.

Question 5

What credit score do I need for each?

Accepted Answer

DSCR typically requires 640 minimum. Hard money lenders care more about deal quality and may approve scores as low as 580.

DSCR vs Hard Money Loans in Corcoran: Which Investor Loan Fits Your Strategy?