Question 1

Can I use DSCR to buy a fixer-upper in Montague?

Accepted Answer

Not if it needs major work. DSCR lenders require the property to be rent-ready and generating income. Use hard money for the purchase and rehab, then refinance into DSCR.

Question 2

How fast can I close with hard money?

Accepted Answer

Most hard money lenders fund in 5-10 days once you have a signed purchase agreement. Some can close in 3 days if the deal is clean.

Question 3

Do DSCR loans require reserves?

Accepted Answer

Yes, expect 6-12 months of reserves. Hard money lenders care less about reserves and focus on your exit strategy and the property's value.

Question 4

Can I get a DSCR loan with bad credit?

Accepted Answer

Most lenders want 620+ for DSCR. Hard money lenders care more about the deal than your credit score, so bad credit matters less.

Question 5

What if the property doesn't cash flow at 1.0 DSCR?

Accepted Answer

You won't qualify for most DSCR programs. Some lenders go down to 0.75 DSCR but charge higher rates and require larger down payments.

DSCR vs Hard Money Loans in Montague: Which Non-QM Loan Fits Your Investment Strategy?