Question 1

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

Accepted Answer

DSCR loans require the property to generate rent now. A vacant fixer-upper won't qualify. Use hard money first, then refi into DSCR.

Question 2

What credit score do I need for hard money?

Accepted Answer

Most hard money lenders will work with scores as low as 580–600. The deal quality matters more than your credit profile.

Question 3

How fast can hard money close in Loma Linda?

Accepted Answer

Many hard money lenders close in 5–10 business days. Some move faster. It depends on the lender and your documentation readiness.

Question 4

Do DSCR loans have prepayment penalties?

Accepted Answer

Many do — typically a 3-year step-down. Read the terms carefully before signing. This affects your flip-to-hold strategy.

Question 5

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

Accepted Answer

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

Question 6

Which loan has lower rates?

Accepted Answer

DSCR loans carry lower rates than hard money. Hard money can run 9–12%+. Rates vary by borrower profile and market conditions.

DSCR vs Hard Money Loans in Loma Linda