Question 1

Can I use a DSCR loan on a vacant property?

Accepted Answer

Most lenders want a lease in place or a market rent appraisal. A vacant property with no rent history makes DSCR qualification harder.

Question 2

How fast does hard money close?

Accepted Answer

Many hard money lenders fund in 5–10 business days. Speed depends on clear title and a clean appraisal or BPO.

Question 3

Do DSCR loans require a minimum credit score?

Accepted Answer

Most DSCR lenders want at least a 620. Better scores get better rates — 700+ puts you in the best pricing tiers.

Question 4

What happens when my hard money loan term ends?

Accepted Answer

You need to sell, refinance, or negotiate an extension. Failing to exit on time can trigger default and penalty rates.

Question 5

Can I refinance from hard money into a DSCR loan?

Accepted Answer

Yes — this is a common strategy. Once the property is stabilized and leased, a DSCR refi replaces the hard money at a lower rate.

Question 6

Which loan has lower down payment requirements?

Accepted Answer

Hard money LTVs vary widely by lender and project. DSCR loans typically allow up to 80% LTV on a purchase.

DSCR vs Hard Money Loans in Saratoga, CA