Question 1

Can I use a DSCR loan to flip a property?

Accepted Answer

No. DSCR loans are built for stabilized rentals, not short-term flips. Use hard money for acquisitions you plan to sell quickly.

Question 2

How fast does hard money close?

Accepted Answer

Some hard money lenders close in 5 to 10 business days. Speed depends on title, appraisal, and lender review.

Question 3

Do DSCR loans require a minimum credit score?

Accepted Answer

Most DSCR lenders want at least a 620. Some go lower with stronger property cash flow or a larger down payment.

Question 4

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

Accepted Answer

Yes — that's a common strategy. Investors use hard money to acquire, rehab, then refi into a DSCR once the property is leased.

Question 5

Which loan fits a Farmersville buy-and-hold investor best?

Accepted Answer

DSCR fits best. Farmersville rentals need long-term, stable financing — not a short-term bridge with a balloon payment.

Question 6

Are both loans available to LLCs?

Accepted Answer

Yes. Both DSCR and hard money loans are commonly structured in an LLC or other entity. Many lenders prefer it.

DSCR Loans vs Hard Money Loans in Farmersville, CA