Question 1

Can I use a DSCR loan for a fixer-upper in Cotati?

Accepted Answer

Not typically. DSCR lenders want move-in-ready rentals with verifiable income. Distressed properties usually need hard money first.

Question 2

What credit score do I need for each loan?

Accepted Answer

DSCR lenders generally want 620 or higher. Hard money lenders focus more on the asset — credit thresholds vary by lender.

Question 3

How fast does hard money actually close?

Accepted Answer

Fast hard money lenders can close in 5 to 10 days. DSCR loans typically take 3 to 4 weeks — closer to conventional timelines.

Question 4

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

Accepted Answer

Yes. Many investors do this intentionally. Buy and renovate with hard money, then stabilize the rent and refi into a DSCR loan.

Question 5

Which loan has lower rates — DSCR or hard money?

Accepted Answer

DSCR rates are generally lower. Hard money carries premium pricing for the speed and flexibility it provides. Rates vary by borrower profile and market conditions.

Question 6

Do either of these loans require income documentation?

Accepted Answer

Neither requires personal income verification. DSCR uses rental income. Hard money uses property value. No tax returns needed for either.

DSCR vs Hard Money Loans in Cotati, CA