Question 1

Can I use DSCR for a property that needs work?

Accepted Answer

Most DSCR lenders require the property to be rent-ready at closing. If it needs rehab, hard money funds the fix first, then you refinance into DSCR.

Question 2

What credit score do hard money lenders require?

Accepted Answer

Most accept 600+ or no score at all if equity is strong. They care more about your exit strategy than your credit history.

Question 3

How much cash do I need for each loan type?

Accepted Answer

DSCR needs 20-25% down plus 6-12 months reserves. Hard money needs 20-30% of purchase price but funds rehab costs into the loan.

Question 4

Can I convert hard money to DSCR later?

Accepted Answer

Yes, many investors refinance completed projects into DSCR loans. This locks in lower rates and shifts from short-term to long-term financing.

Question 5

Which loan closes faster in Waterford?

Accepted Answer

Hard money closes in 5-10 days. DSCR takes 3-4 weeks for full underwriting and appraisal.

DSCR Loans vs Hard Money Loans in Waterford: Which Fits Your Investment Strategy?