Question 1

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

Accepted Answer

DSCR lenders want rent-ready properties. A fixer-upper won't qualify. Use hard money first, renovate, then refinance into DSCR.

Question 2

What credit score do I need for each loan?

Accepted Answer

DSCR lenders typically require 620–680 minimum. Hard money is more flexible — some lenders care more about the deal than your score.

Question 3

How fast can hard money close in Norco?

Accepted Answer

Many hard money lenders close in 5–10 business days. That speed is the main reason investors use them for competitive situations.

Question 4

Do DSCR loans require a down payment?

Accepted Answer

Yes. Expect 20–25% down on most DSCR loans. Hard money lenders also require equity — often 65–75% loan-to-value.

Question 5

Can I refinance from hard money into a DSCR loan?

Accepted Answer

Yes — that's a common strategy. Acquire with hard money, stabilize the property, then refinance into a long-term DSCR loan.

Question 6

Which loan has lower monthly payments?

Accepted Answer

DSCR loans win on monthly cost. Hard money often has higher rates and shorter terms, so monthly obligations run steep.

DSCR vs Hard Money Loans in Norco, CA