Question 1

Can I use a DSCR loan to buy a fixer-upper in Salinas?

Accepted Answer

Generally, no. DSCR lenders want a property in rentable condition. A hard money loan handles the acquisition and rehab first.

Question 2

What credit score do I need for each loan?

Accepted Answer

DSCR loans typically require 660+. Hard money lenders are more flexible and often approve below that, focusing on the asset instead.

Question 3

How fast can a hard money loan close?

Accepted Answer

Some hard money lenders close in 5-10 business days. Speed depends on title, appraisal, and lender pipeline.

Question 4

Can I refinance from hard money into a DSCR loan?

Accepted Answer

Yes — this is a common Salinas investor strategy. Rehab with hard money, stabilize the rent, then refinance into a long-term DSCR loan.

Question 5

Which loan has lower rates?

Accepted Answer

DSCR loans carry lower rates. Hard money rates are higher due to short terms and asset-based risk. Rates vary by borrower profile and market conditions.

Question 6

Do either of these loans require tax returns?

Accepted Answer

Neither hard money nor DSCR loans typically require personal tax returns. Both qualify based on the property, not your personal income.

DSCR Loans vs Hard Money Loans in Salinas, CA