Question 1

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

Accepted Answer

Usually no. DSCR lenders require the property to be in rentable condition. Distressed properties need hard money first.

Question 2

How fast can hard money close in Sunnyvale?

Accepted Answer

Many hard money lenders close in 5–10 business days. That speed is the main reason investors use them on competitive deals.

Question 3

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

Accepted Answer

Yes — and this is a common two-step strategy. Renovate with hard money, stabilize the rental, then refi into a long-term DSCR loan.

Question 4

Do DSCR loans work for LLCs?

Accepted Answer

Yes. Most DSCR lenders allow LLC borrowers. Hard money lenders typically do too.

Question 5

Which loan has lower interest rates?

Accepted Answer

DSCR loans carry lower rates than hard money. Hard money's higher cost reflects its speed and flexibility. Rates vary by borrower profile and market conditions.

Question 6

What credit score do I need for each loan?

Accepted Answer

DSCR lenders typically want 620 or higher. Hard money lenders are more flexible — some approve deals with lower scores when the asset is strong.

DSCR vs Hard Money Loans in Sunnyvale