Question 1

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

Accepted Answer

Not if it's in poor condition. DSCR lenders require the property to be rentable at close. Hard money is the right tool for rehab situations.

Question 2

How fast can hard money close in Jamestown?

Accepted Answer

Many hard money lenders close in 5–10 business days. Speed depends on the lender and how quickly title clears.

Question 3

Do I need good credit for either loan?

Accepted Answer

Hard money is the most flexible — some lenders go down to 600 or lower. DSCR loans typically require 620–660 minimum credit.

Question 4

What's a DSCR ratio and why does it matter?

Accepted Answer

DSCR means Debt Service Coverage Ratio — it's rent divided by mortgage payment. Most lenders want a ratio at or above 1.0 to approve the loan.

Question 5

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

Accepted Answer

Yes — that's a common exit strategy. Once the property is renovated and rented, a DSCR refi replaces the hard money and drops your rate.

Question 6

Which loan has lower down payment requirements?

Accepted Answer

Both typically require 20–30% down or equity. Hard money may go higher on leverage for strong deals, but terms vary by lender.

DSCR vs Hard Money Loans in Jamestown, CA