Question 1

Can I use both loan types for the same property?

Accepted Answer

Yes, many investors use hard money to purchase and renovate, then refinance into a DSCR loan for long-term rental income. This strategy combines speed with stability.

Question 2

Which loan type has lower interest rates in San Jacinto?

Accepted Answer

DSCR loans typically offer lower rates than hard money loans. However, rates vary by borrower profile and market conditions. Hard money's speed often justifies the higher cost.

Question 3

Do either loan types require perfect credit?

Accepted Answer

Neither requires perfect credit, though standards vary by lender. DSCR loans typically need mid-600s credit scores. Hard money lenders may accept lower scores since they focus on property value.

Question 4

How quickly can I close with each loan type?

Accepted Answer

Hard money loans often close in 5-10 days. DSCR loans typically take 21-30 days. Choose based on whether you prioritize speed or lower long-term costs.

Question 5

What down payment is required for each option?

Accepted Answer

DSCR loans typically require 20-25% down for investment properties. Hard money lenders may require 25-35% down or more, depending on the project and property condition.

DSCR Loans vs Hard Money Loans in San Jacinto: Which Financing Fits Your Investment Strategy?