Question 1

Can I use DSCR loans for fix-and-flip properties?

Accepted Answer

No. DSCR loans require rental income, which flips don't generate. Hard money is built for flips—you pay higher rates but exit fast through sale or refinance.

Question 2

Which loan has lower closing costs?

Accepted Answer

DSCR has standard closing costs like conventional loans. Hard money adds 2-4 points upfront, making it more expensive at close but faster to fund.

Question 3

Do both loans work for Burlingame investment properties?

Accepted Answer

Yes, but for different strategies. DSCR fits long-term rentals with strong cash flow. Hard money fits quick acquisitions and rehab projects.

Question 4

What credit score do I need for each loan?

Accepted Answer

DSCR typically requires 640+ credit. Hard money cares less about credit—some lenders approve 580+ scores if equity and exit plan are solid.

Question 5

Can I refinance hard money into DSCR later?

Accepted Answer

Yes, that's a common strategy. Use hard money to acquire and renovate, then refinance into DSCR once the property generates rental income.

DSCR Loans vs Hard Money Loans in Burlingame: Which Investor Loan Fits Your Deal?