Question 1

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

Accepted Answer

Not usually. DSCR lenders want a rent-ready property. Distressed deals need hard money first, then a DSCR refinance after repairs.

Question 2

How fast does hard money close compared to DSCR?

Accepted Answer

Hard money can close in 5–10 days. DSCR loans typically take 3–4 weeks. Speed is hard money's main advantage.

Question 3

Do either of these loans check my personal income?

Accepted Answer

Neither requires traditional income docs. DSCR uses rental income. Hard money focuses on property value and your exit plan.

Question 4

What credit score do I need for each loan?

Accepted Answer

DSCR lenders typically want 640–680 minimum. Hard money lenders are more flexible — some approve below 600 based on the deal.

Question 5

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

Accepted Answer

Yes, and we do this regularly. Once the property is stabilized and rented, a DSCR refi replaces the short-term hard money loan.

Question 6

Which loan has lower rates in San Bernardino County?

Accepted Answer

DSCR rates are consistently lower than hard money. Rates vary by borrower profile and market conditions for both products.

DSCR vs Hard Money Loans in Montclair, CA