Question 1

Can I use DSCR if I'm self-employed?

Accepted Answer

Yes. DSCR doesn't care about your W-2 income. It cares about the rental income the property generates. Self-employed investors with strong rental leases qualify easily.

Question 2

What's the real cost difference between DSCR and hard money?

Accepted Answer

DSCR costs more over time but less upfront. Hard money costs less on the rate but charges 2–4% in fees immediately. On a $500,000 hard money loan, expect $10,000–$20,000 due at closing. DSCR spreads its higher rate across 30 years.

Question 3

Do I need perfect credit for a DSCR loan?

Accepted Answer

No. DSCR lenders typically accept 620+ FICO. Hard money doesn't check credit at all. DSCR rates improve at 680+, but you don't need pristine credit. The rental income and equity matter more than your credit score.

Question 4

How fast can hard money close in South Pasadena?

Accepted Answer

7–14 days. Hard money skips appraisals and income verification. You'll need a property appraisal and proof of funds, but underwriting is minimal. DSCR takes 30–45 days because it requires lease review and full underwriting.

Question 5

Can I refinance hard money into DSCR later?

Accepted Answer

Yes. Hard money is often a bridge to DSCR or conventional. Once your rental property has 12 months of lease history, you can refinance into DSCR at a lower rate. This is a common strategy for investors buying and renovating in South Pasadena.

DSCR vs Hard Money Loans in South Pasadena