Question 1

Can I qualify for DSCR with no current rental income?

Accepted Answer

Yes, if the property appraises with a market rent estimate. Lenders use appraiser's rental comps to calculate DSCR for vacant units.

Question 2

Do hard money lenders require personal guarantees?

Accepted Answer

Most do, but they focus on the asset's value and your exit plan. Your personal income matters less than the property's equity cushion.

Question 3

What's the minimum credit score for each loan type?

Accepted Answer

DSCR typically requires 660+. Hard money lenders accept 600 or lower, sometimes waiving credit checks entirely for strong deals with significant equity.

Question 4

Can I use hard money to buy and DSCR to refinance the same property?

Accepted Answer

Yes, this is a common strategy. Close fast with hard money, complete rehab, stabilize rent, then refinance into lower-rate DSCR permanent financing.

Question 5

How much does hard money cost compared to DSCR?

Accepted Answer

Hard money runs 9-14% plus 2-4 points. DSCR runs 1-2% above conventional rates, typically 7-9% with minimal or no origination fees.

DSCR vs Hard Money Loans in Atascadero: Which Investor Loan Works for Your Deal?