Question 1

Can I use a DSCR loan to buy a fixer-upper?

Accepted Answer

Not typically. DSCR lenders need rental income to qualify the loan. A non-income-producing property won't meet the ratio requirement.

Question 2

Can I refinance hard money into a DSCR loan?

Accepted Answer

Yes. That's a common strategy. Rehab with hard money, stabilize the rental, then refinance into a DSCR loan for long-term financing.

Question 3

What credit score do DSCR lenders require?

Accepted Answer

Most DSCR lenders require at least a 620 credit score. Some go lower, but rates get worse quickly below 660.

Question 4

Do hard money lenders check credit at all?

Accepted Answer

Some do a basic pull, but it rarely drives the decision. The property's after-repair value carries most of the weight.

Question 5

Which loan works better for Corning's price range?

Accepted Answer

Both can work in lower-priced markets like Corning. Hard money shines on distressed deals. DSCR rewards rentals with solid yield-to-price ratios.

Question 6

How much down payment does each loan require?

Accepted Answer

DSCR loans typically require 20-25% down. Hard money lenders often lend based on LTV against after-repair value, sometimes covering acquisition and rehab costs.

DSCR vs Hard Money Loans in Corning, CA