Question 1

Can I use a DSCR loan for a property that needs work?

Accepted Answer

Only minor cosmetic work. The property must be rent-ready at closing since lenders base approval on current rental income potential.

Question 2

What's the typical down payment for each loan type?

Accepted Answer

DSCR loans require 20-25% down. Hard money lenders typically want 10-20% down but focus more on equity after repairs.

Question 3

Can I refinance a hard money loan into a DSCR loan?

Accepted Answer

Yes, this is a common exit strategy. Once renovations finish and the property generates rent, you refinance into long-term DSCR financing.

Question 4

Which loan has easier credit requirements?

Accepted Answer

Hard money cares less about credit scores, sometimes funding below 600. DSCR loans typically require 620+ credit for approval.

Question 5

Do both loans work for multifamily properties in San Fernando?

Accepted Answer

Yes. DSCR loans fund 2-4 units easily. Hard money funds any property type but prices deals based on complexity.

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