Question 1

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

Accepted Answer

No. DSCR lenders require the property to be in rentable condition. Use hard money first, then refinance into DSCR after stabilization.

Question 2

How fast does hard money close?

Accepted Answer

Many hard money deals close in 5 to 10 business days. That speed is exactly why RSM investors use it for competitive offers.

Question 3

Do DSCR loans require a minimum credit score?

Accepted Answer

Most DSCR lenders want at least a 620. Some go lower, but rates get worse fast below that threshold.

Question 4

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

Accepted Answer

Yes — and that's the most common exit strategy. Once the property is stabilized and rented, DSCR refinancing makes sense.

Question 5

Which loan has lower interest rates?

Accepted Answer

DSCR loans carry lower rates than hard money. Hard money costs more because lenders take on more risk. Rates vary by borrower profile and market conditions.

Question 6

Do either of these loans require tax returns?

Accepted Answer

No. Both are asset-based products. Neither loan uses your personal tax returns or W-2s to qualify.

DSCR Loans vs Hard Money Loans in Rancho Santa Margarita