Question 1

Can I use a DSCR loan to flip a property?

Accepted Answer

No. DSCR loans are designed for stabilized rentals with ongoing income. For a flip, hard money is the right tool.

Question 2

How fast does hard money close compared to DSCR?

Accepted Answer

Hard money can close in days. DSCR typically takes 2–4 weeks. Speed costs more in rate and fees.

Question 3

Do either of these loans check my credit score?

Accepted Answer

DSCR lenders usually want a minimum score — often 620 or higher. Hard money lenders focus on the asset and are more flexible.

Question 4

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

Accepted Answer

Yes — and many Hanford investors do exactly that. Fix the property, stabilize rent, then refinance into a long-term DSCR loan.

Question 5

Which loan has a lower interest rate?

Accepted Answer

DSCR loans carry lower rates than hard money. Rates vary by borrower profile and market conditions.

Question 6

Do I need to be an LLC to get either loan in California?

Accepted Answer

No, but many investors use LLCs. Both loan types are available to individuals and entities — ask your broker which structure fits best.

DSCR vs Hard Money Loans in Hanford, CA