Question 1

Can I use a DSCR loan on a property that needs repairs?

Accepted Answer

No. DSCR lenders require the property to be rent-ready. Start with hard money, renovate, then refinance into a DSCR loan.

Question 2

How fast does hard money close compared to DSCR?

Accepted Answer

Hard money can close in 5 to 10 business days. DSCR loans typically take 2 to 4 weeks through underwriting.

Question 3

Do either of these loans check my personal income?

Accepted Answer

Neither requires traditional income verification. DSCR uses rent, and hard money focuses on property value.

Question 4

What credit score do I need for each loan?

Accepted Answer

DSCR lenders often require 620 or higher. Hard money lenders vary — some fund below 600 if the deal is strong.

Question 5

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

Accepted Answer

Yes. That's a common investor strategy. Renovate with hard money, stabilize the rent, then refinance into a long-term DSCR loan.

Question 6

Which loan has lower interest rates?

Accepted Answer

DSCR loans carry lower rates than hard money. Rates vary by borrower profile and market conditions.

DSCR Loans vs Hard Money Loans in Monte Sereno