Question 1

Can I use hard money to buy a Norwalk rental property?

Accepted Answer

Yes, but you'll pay 9-14% interest versus 7-9% for DSCR. Hard money makes sense only if you need to close in under two weeks or can't qualify for DSCR yet.

Question 2

Do DSCR loans work for fix-and-flip projects in Norwalk?

Accepted Answer

Not really. DSCR lenders require the property to be rent-ready at closing. Hard money is built for renovation projects with draws released as work completes.

Question 3

Which loan is easier to qualify for with bad credit?

Accepted Answer

Hard money. Most DSCR lenders want 620+ credit, while hard money lenders approve borrowers in the 500s if the deal has enough equity.

Question 4

Can I refinance hard money into a DSCR loan?

Accepted Answer

Yes, and many Norwalk investors do exactly this. You use hard money to acquire and renovate, then refi to DSCR once the property is rented and stabilized.

Question 5

How much down payment does each loan require?

Accepted Answer

DSCR loans need 20-25% down. Hard money lenders typically fund 65-75% of after-repair value, so your down payment depends on purchase price and renovation costs.

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