Question 1

Can I use DSCR for a property that needs major renovation?

Accepted Answer

Not typically. DSCR lenders want properties generating rent within 30-60 days of closing. Major rehabs need hard money first.

Question 2

What happens if I can't sell or refinance my hard money loan on time?

Accepted Answer

Most lenders offer 3-6 month extensions at 1-2% of the loan balance per extension. Avoid this by planning your exit before you close.

Question 3

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

Accepted Answer

Yes. DSCR works great for 2-4 units with rental history. Hard money funds multi-unit value-add deals where you'll renovate and raise rents.

Question 4

Which loan has easier credit requirements?

Accepted Answer

Hard money cares less about credit since it's asset-based. DSCR typically requires 620+ credit scores for approval.

Question 5

Can I get both loans without showing tax returns?

Accepted Answer

Correct. Neither requires tax returns or income verification. DSCR uses property income, hard money uses property value.

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