Question 1

Can I use either loan type for properties in Aliso Viejo?

Accepted Answer

Yes, both DSCR and hard money loans are available for Aliso Viejo investment properties. Your choice depends on your investment strategy and timeline.

Question 2

Which loan closes faster in Orange County?

Accepted Answer

Hard money loans close much faster, often within days. DSCR loans typically take 3 to 4 weeks to close but offer better long-term rates.

Question 3

Do I need good credit for these loans?

Accepted Answer

DSCR loans typically require 620+ credit scores. Hard money lenders focus more on property value and may accept lower credit scores.

Question 4

Which loan has lower interest rates?

Accepted Answer

DSCR loans generally offer lower rates for long-term financing. Hard money loans cost more but provide speed and flexibility. Rates vary by borrower profile and market conditions.

Question 5

Can I refinance from hard money to DSCR?

Accepted Answer

Yes, this is a common strategy. Use hard money for acquisition and rehab, then refinance to a DSCR loan once the property generates rental income.

DSCR Loans vs Hard Money Loans in Aliso Viejo: Compare Your Options