Question 1

Can I use DSCR loans for a fixer property in Lawndale?

Accepted Answer

Only if it's already habitable and rented. DSCR lenders need current rental income to qualify you, so major rehabs don't work.

Question 2

Do hard money lenders require proof of income?

Accepted Answer

No. They fund based on the property's value and your exit strategy, not your W-2 or tax returns.

Question 3

What's the minimum credit score for each loan type?

Accepted Answer

DSCR typically requires 620+. Hard money lenders will go as low as 550-580 if the deal has strong equity.

Question 4

Can I refinance from hard money into a DSCR loan?

Accepted Answer

Yes, that's a common strategy. Finish the rehab, get tenants in place, then refinance to a lower long-term rate.

Question 5

Which loan has higher closing costs?

Accepted Answer

Hard money costs more upfront with 2-4 points. DSCR has standard closing costs similar to conventional loans.

Question 6

How much can I borrow with each loan type in Lawndale?

Accepted Answer

DSCR goes up to 80% LTV on the purchase price. Hard money lends 65-75% of the after-repair value.

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