Question 1

Can I use a DSCR loan on a property that needs repairs?

Accepted Answer

Minor repairs are fine, but the property must appraise as rent-ready. Major rehabs need hard money first, then refinance to DSCR.

Question 2

How fast can I close a hard money loan in Lincoln?

Accepted Answer

Most hard money lenders close in 7-14 days. Some can fund in 5 days if you have all docs ready and the property checks out.

Question 3

What down payment do I need for each loan type?

Accepted Answer

DSCR loans require 20-25% down. Hard money typically needs 25-35% down based on the after-repair value of the property.

Question 4

Do I need good credit for these loans?

Accepted Answer

DSCR lenders want 660+ credit. Hard money lenders focus on the deal, not your score. Some approve with credit in the 500s.

Question 5

Can I refinance from hard money to DSCR?

Accepted Answer

Yes, this is common. Complete the rehab, get tenants in place, then refinance to a DSCR loan for long-term cash flow.

DSCR Loans vs Hard Money Loans in Lincoln: Which Investor Loan Fits Your Strategy?