Question 1

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

Accepted Answer

Usually no. DSCR lenders require a rentable property with actual or projected rent income. Hard money handles the acquisition and rehab first.

Question 2

How fast does hard money close compared to DSCR?

Accepted Answer

Hard money can close in 7-14 days. DSCR typically takes 3-4 weeks due to appraisal and underwriting steps.

Question 3

Do hard money lenders check my credit score?

Accepted Answer

Some do, but it's rarely the deciding factor. The property's value and your exit strategy matter far more to hard money lenders.

Question 4

Can I refinance hard money into a DSCR loan?

Accepted Answer

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

Question 5

Which loan has lower rates in Costa Mesa?

Accepted Answer

DSCR loans carry significantly lower rates than hard money. Rates vary by borrower profile and market conditions.

Question 6

Is a DSCR loan considered non-QM?

Accepted Answer

Yes. DSCR loans don't follow conventional qualifying rules. No tax returns or pay stubs — the property's income does the qualifying.

DSCR vs Hard Money Loans in Costa Mesa