Question 1

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

Accepted Answer

Generally no. DSCR lenders want the property rent-ready. Use hard money first, renovate, then refinance into DSCR once it's stabilized.

Question 2

How fast does hard money actually close?

Accepted Answer

Experienced hard money lenders can fund in 5 to 10 business days. Some go faster. DSCR loans typically take 3 to 4 weeks.

Question 3

Do DSCR loans require a minimum property value?

Accepted Answer

Most DSCR lenders set a floor around $75,000 to $100,000. Vallejo properties typically clear that easily, but confirm with your lender.

Question 4

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

Accepted Answer

Yes. That's a common strategy. Once the property is rented and cash-flowing, a DSCR refi replaces the short-term hard money debt.

Question 5

Which loan has lower rates in Vallejo?

Accepted Answer

DSCR rates run meaningfully lower than hard money. Hard money's higher cost reflects speed and asset-only underwriting. Rates vary by borrower profile and market conditions.

Question 6

Do either of these loans require proof of employment?

Accepted Answer

Neither one does. Both underwrite the deal, not your job. That's why investors with complex income or self-employment use them.

DSCR Loans vs Hard Money Loans in Vallejo, CA