Question 1

Can I use a DSCR loan for a fix-and-flip?

Accepted Answer

No. DSCR loans require a stabilized or rentable property. Use hard money for rehab projects, then refinance into DSCR once it's rent-ready.

Question 2

Do hard money lenders check my credit score?

Accepted Answer

Most do a soft review, but it rarely drives the decision. The property value and your exit plan matter far more to hard money lenders.

Question 3

What DSCR ratio do lenders require?

Accepted Answer

Most lenders want a minimum DSCR of 1.0 — meaning rent covers the full mortgage payment. Some programs allow below 1.0 with a larger down payment.

Question 4

How fast can hard money loans close in San Diego?

Accepted Answer

Many hard money lenders close in 5–10 business days. That speed is the main reason investors use them on competitive San Diego offers.

Question 5

Can I refinance from hard money into a DSCR loan?

Accepted Answer

Yes — that's a common strategy. Acquire and rehab with hard money, then refinance into a DSCR loan once the property is leased and stabilized.

Question 6

Which loan has lower rates, DSCR or hard money?

Accepted Answer

DSCR rates are consistently lower. Hard money carries a premium for speed and flexibility. Rates vary by borrower profile and market conditions.

DSCR vs Hard Money Loans in San Diego