Question 1

Can I refinance from hard money into a DSCR loan?

Accepted Answer

Yes — this is a common strategy. Acquire with hard money, stabilize the property, then refi into a DSCR loan for long-term hold.

Question 2

What credit score do I need for a DSCR loan?

Accepted Answer

Most DSCR lenders want at least a 620. Some go lower with compensating factors like larger down payments.

Question 3

Do hard money lenders care about my credit?

Accepted Answer

Asset value matters most. Some lenders check credit minimally. A strong deal can offset a weaker credit profile.

Question 4

Which loan works for LLCs in Merced?

Accepted Answer

Both do. DSCR lenders routinely lend to LLCs. Hard money lenders typically prefer entity-held deals for investor properties.

Question 5

How is DSCR calculated?

Accepted Answer

Divide the property's monthly rent by its monthly mortgage payment. A ratio of 1.0 or above generally meets approval thresholds.

Question 6

Is hard money available for rental properties, not just flips?

Accepted Answer

Yes, but it's expensive to carry long-term. Use it to acquire fast, then exit into permanent financing quickly.

DSCR Loans vs Hard Money Loans in Merced, CA