Question 1

Can I refinance hard money into DSCR after renovating?

Accepted Answer

Yes, most investors do exactly that. Once the property is renovated and leased, DSCR replaces expensive hard money with a sustainable long-term loan.

Question 2

Which loan requires better credit in La Mirada?

Accepted Answer

DSCR typically needs 620+ credit and clean payment history. Hard money approves deals at 580 FICO if you have enough equity and a clear exit strategy.

Question 3

Do both loans work for multi-family properties?

Accepted Answer

Yes. DSCR handles 2-4 units easily if rental income supports the payment. Hard money funds multi-family rehabs based on property value and equity position.

Question 4

How much down payment does each loan require?

Accepted Answer

DSCR needs 20-25% down for investment properties. Hard money typically requires 25-35% equity, either as down payment or existing equity in the property.

Question 5

Can I use DSCR for a property I'm still renovating?

Accepted Answer

No. DSCR requires existing rental income or a signed lease. Use hard money during renovation, then refinance to DSCR once the property is rent-ready.

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