Question 1

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

Accepted Answer

Not until it's rent-ready. DSCR lenders need proof of rental income or a signed lease at closing, so the property must be habitable.

Question 2

Do hard money lenders require an appraisal?

Accepted Answer

Yes, but they order it themselves and fund based on ARV. Some use broker price opinions instead of full appraisals to save time.

Question 3

Which loan type has lower total costs?

Accepted Answer

DSCR wins on rate and fees. Hard money costs more upfront and monthly, but you're paying for speed and flexibility, not long-term affordability.

Question 4

Can I get both loan types with the same lender?

Accepted Answer

Rarely. Most lenders specialize in one or the other, which is why working with a broker who accesses both markets matters.

Question 5

What's the minimum credit score for each?

Accepted Answer

DSCR typically requires 660+. Hard money lenders will go as low as 550 if the deal has strong equity and clear exit strategy.

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