Question 1

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

Accepted Answer

Most DSCR lenders require the property to be rent-ready. For heavy rehab deals, hard money is the better starting point.

Question 2

How fast can hard money close in Santa Paula?

Accepted Answer

Many hard money lenders close in 5–10 business days. Speed depends on title and the lender's process.

Question 3

Do DSCR loans require a minimum credit score?

Accepted Answer

Most DSCR lenders require at least 620. Some go lower, but expect a higher rate and stricter terms.

Question 4

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

Accepted Answer

Yes — this is a common strategy. Complete the rehab, stabilize the rent, then refinance into a long-term DSCR loan.

Question 5

Which loan has a lower down payment requirement?

Accepted Answer

DSCR loans typically require 20–25% down. Hard money varies widely — some lenders fund up to 90% of purchase price.

Question 6

Are both loans available for Santa Paula multi-family properties?

Accepted Answer

Yes. Both loan types work on small multi-family. DSCR lenders often go up to 4 units; some hard money lenders go higher.

DSCR vs Hard Money Loans in Santa Paula