Question 1

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

Accepted Answer

Most DSCR lenders require the property to be rent-ready. A hard money loan is a better tool for acquisitions that need significant work before leasing.

Question 2

What credit score do I need for each loan?

Accepted Answer

DSCR lenders typically require 620 or higher. Hard money lenders focus on the deal itself and often approve borrowers with lower scores.

Question 3

Which loan closes faster in Vacaville?

Accepted Answer

Hard money closes faster — sometimes in days. DSCR loans go through more underwriting and typically take a few weeks to close.

Question 4

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

Accepted Answer

Yes. Many investors use hard money to acquire or renovate, then refinance into a DSCR loan once the property is stabilized and cash-flowing.

Question 5

Which loan has lower monthly payments?

Accepted Answer

DSCR loans generally carry lower rates and spread payments over 30 years. Hard money has higher rates and short terms, so monthly costs run higher.

Question 6

Do either of these loans require income verification?

Accepted Answer

Neither requires traditional income docs like W-2s or tax returns. DSCR uses rental income; hard money focuses almost entirely on the property's value.

DSCR vs Hard Money Loans in Vacaville, CA