Question 1

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

Accepted Answer

DSCR works for rentals, not flips. Lenders underwrite based on rental income, so the property needs a tenant. Use hard money for rehab projects you plan to sell.

Question 2

What credit score do I need for each loan type?

Accepted Answer

DSCR lenders want 620 minimum, though 680+ gets better rates. Hard money often approves 580 scores if the deal has enough equity and a clear exit.

Question 3

Which loan closes faster in South San Francisco?

Accepted Answer

Hard money closes in 5-10 days. DSCR takes 2-3 weeks. Speed matters when competing against cash offers on multi-unit properties near biotech corridors.

Question 4

Can I refinance hard money into a DSCR loan?

Accepted Answer

Yes, and many investors do. Close fast with hard money, finish the rehab, get a tenant in place, then refinance to DSCR for lower payments.

Question 5

Do both loan types work for multi-unit properties?

Accepted Answer

Both work for 2-4 units and larger buildings. DSCR caps around 8 units with most lenders. Hard money goes higher if the project makes sense.

DSCR vs Hard Money Loans: Which Financing Works for South San Francisco Investors?