Question 1

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

Accepted Answer

Generally no. DSCR lenders want the property rent-ready. Hard money is the right tool for distressed acquisitions.

Question 2

What credit score do I need for each loan?

Accepted Answer

DSCR lenders typically want a 620 minimum. Hard money lenders are more flexible — some don't have a minimum at all.

Question 3

How fast does hard money actually close?

Accepted Answer

Many hard money deals close in 5 to 10 business days. DSCR loans usually take 2 to 4 weeks.

Question 4

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

Accepted Answer

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

Question 5

Do either of these loans require income verification?

Accepted Answer

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

Question 6

Which loan has a lower interest rate?

Accepted Answer

DSCR loans carry lower rates. Hard money rates run significantly higher due to short terms and increased lender risk. Rates vary by borrower profile and market conditions.

DSCR Loans vs Hard Money Loans in Guadalupe, CA