Question 1

Can I use a DSCR loan on a fixer-upper in Gustine?

Accepted Answer

Generally no. DSCR lenders want rent-ready property. Use hard money to renovate, then refinance into a DSCR loan once it's leased.

Question 2

What credit score do I need for each loan?

Accepted Answer

DSCR lenders typically require 620–680 minimum. Hard money lenders are more flexible — some have no minimum credit requirement.

Question 3

How fast can hard money close compared to DSCR?

Accepted Answer

Hard money can close in 3–7 days. DSCR loans typically take 2–4 weeks, similar to a conventional loan process.

Question 4

Do either of these loans require tax returns?

Accepted Answer

Neither requires personal tax returns. DSCR qualifies on rental income. Hard money qualifies on the property's value alone.

Question 5

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

Accepted Answer

Yes. This is a common Merced County investor move — acquire and renovate with hard money, then lock in permanent DSCR financing.

Question 6

Which loan has lower rates?

Accepted Answer

DSCR loans carry lower rates than hard money. Hard money's speed comes at a cost. Rates vary by borrower profile and market conditions.

DSCR vs Hard Money Loans in Gustine, CA