Question 1

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

Accepted Answer

Yes, that's a common strategy. Close fast with hard money, complete renovations, get tenants in place, then refinance to DSCR for long-term financing at lower rates.

Question 2

Which loan has higher approval odds for new investors?

Accepted Answer

Hard money approves more easily since it's asset-based. DSCR requires stronger credit and proven rental income from the property.

Question 3

What's the minimum credit score for each loan type?

Accepted Answer

DSCR typically needs 620+ credit. Hard money lenders often approve down to 550 or even lower if the deal has enough equity cushion.

Question 4

How much does each loan cost on a $600K Temple City property?

Accepted Answer

DSCR at 8% costs $4,400/month with no points. Hard money at 11% plus 3 points costs $5,500/month plus $18K upfront.

Question 5

Can I get a DSCR loan on a property that needs repairs?

Accepted Answer

Not usually. DSCR lenders want rent-ready properties. Hard money handles distressed assets that need work before they can generate rental income.

DSCR Loans vs Hard Money Loans: Which Fits Your Temple City Investment Strategy?