Question 1

Can I refinance from hard money to DSCR?

Accepted Answer

Yes, most investors do this after renovations are done. You'll need the property to cash flow and meet DSCR requirements, typically a 1.25 ratio.

Question 2

Which loan has lower closing costs?

Accepted Answer

DSCR loans cost less upfront—standard fees only. Hard money charges 2-4 points plus fees, adding $20,000-$40,000 on a million-dollar loan.

Question 3

Do both loans work for non-owner occupied properties?

Accepted Answer

Yes, both are investment property loans only. DSCR requires current or projected rental income; hard money doesn't care about occupancy.

Question 4

Which loan approves faster in Santa Monica?

Accepted Answer

Hard money wins on speed—7 days versus 15-30 for DSCR. But DSCR still closes faster than most conventional loans.

Question 5

Can I use hard money for a Santa Monica rental property?

Accepted Answer

You can, but it's expensive. Use hard money only if you need fast acquisition, then refinance to DSCR within 6-12 months.

DSCR Loans vs Hard Money Loans in Santa Monica: Which Investor Loan Wins?