Question 1

Can I use a DSCR loan on a property that needs repairs?

Accepted Answer

Not easily. DSCR lenders want a rent-ready property. Use hard money for the rehab, then refinance into a DSCR loan once it's stabilized.

Question 2

What credit score do I need for hard money?

Accepted Answer

Hard money lenders focus on the deal, not your credit. Some fund with scores below 600, but stronger credit can get you better terms.

Question 3

How fast can hard money close compared to DSCR?

Accepted Answer

Hard money can close in days. DSCR loans typically take two to four weeks, closer to a conventional timeline.

Question 4

Can I refinance from hard money into a DSCR loan?

Accepted Answer

Yes — and this is a common investor strategy. Once the property is leased and cash-flowing, a DSCR refi replaces the short-term hard money debt.

Question 5

Which loan has lower rates, DSCR or hard money?

Accepted Answer

DSCR rates are lower. Hard money carries a premium for speed and flexibility. Rates vary by borrower profile and market conditions.

Question 6

Do either of these loans require personal income docs?

Accepted Answer

Neither loan uses W-2s or tax returns to qualify. DSCR uses rental income. Hard money uses property value and your exit plan.

DSCR Loans vs Hard Money Loans in Woodlake, CA