Question 1

Can I refinance from hard money into DSCR?

Accepted Answer

Yes, most investors do this within 6-12 months. Once you stabilize the property and place tenants, DSCR lenders will refinance your hard money loan at a lower rate.

Question 2

Do DSCR loans work for properties with no rental history?

Accepted Answer

Yes, lenders use market rent estimates from appraisals. You don't need existing leases, just proof the property could generate sufficient rental income based on local comps.

Question 3

What's the minimum down payment for each loan type?

Accepted Answer

DSCR loans typically require 20-25% down. Hard money lenders often accept 10-20% down but charge higher rates for lower equity positions.

Question 4

Can I use DSCR for a fix-and-flip?

Accepted Answer

No, DSCR loans are designed for rental properties you'll hold. Hard money is the standard choice for flips because you're not collecting rent during the renovation period.

Question 5

Which loan has faster approval?

Accepted Answer

Hard money approves in 1-3 days and funds within a week. DSCR approval takes 5-7 days with closing in 15-25 days total.

DSCR Loans vs Hard Money Loans in Ceres: Which Investor Loan Fits Your Strategy?