Question 1

Can I use a DSCR loan to flip a property?

Accepted Answer

No. DSCR loans are for income-producing rentals, not flips. Use hard money for short-term acquisition and renovation projects.

Question 2

Do hard money lenders check my credit?

Accepted Answer

Some do, but it rarely drives approval. The property value and your exit strategy matter far more to hard money lenders.

Question 3

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

Accepted Answer

Yes — this is a common exit strategy. Once the property is stabilized and renting, a DSCR loan replaces the hard money bridge.

Question 4

Which loan closes faster in Petaluma?

Accepted Answer

Hard money wins on speed — closings in days are realistic. DSCR loans typically take 2 to 4 weeks to close.

Question 5

Can an LLC borrow with either of these loans?

Accepted Answer

Yes. Both DSCR and hard money loans are commonly structured under LLCs, which most investors prefer for liability protection.

Question 6

What credit score do I need for a DSCR loan?

Accepted Answer

Most DSCR lenders want a 620 minimum. A higher score gets you better pricing — 700+ opens up the best rate tiers.

DSCR vs Hard Money Loans in Petaluma, CA