How is private (hard money) lending different from a bank loan?

We are asset-based, which means we underwrite the property, its equity, and your business plan rather than your personal income and tax returns. That lets us fund in days instead of the 30 to 60+ days a bank takes, on short interest-only terms built around a flip, refinance, or sale. You pay a higher rate than a bank in exchange for speed, flexibility, and certainty on deals a bank cannot fund in time.

How fast can you close?

Fix and flip and residential bridge loans typically close in 5 to 7 days once we have your basics. Rental (DSCR) loans usually take 2 to 3 weeks because of the appraisal and rent verification, and SBA financing runs 30 to 90 days. The biggest variable is how quickly title, insurance, and your documents come together.

Do you check credit, and is there a minimum score?

We do run credit, but on our asset-based loans it carries far less weight than at a bank, and weaker credit can often be offset with a larger down payment or lower leverage. There is no personal income test on these programs. Credit matters most on long-term rental loans, where we look for a 640 minimum and it affects your rate and leverage.

Do I need to provide income documents or tax returns?

Generally no. Our bridge, fix and flip, and construction loans qualify off the property and your equity, and our DSCR rental loans qualify off the property's rent, so we do not ask for W-2s or pay stubs. We will want to see bank statements or proof of reserves. SBA and conventional investment loans are the exceptions and are fully documented.

What do you need to give me a quote?

Just the basics of the deal: the property address or type, the purchase price or current value, your rehab budget, the loan amount, and your exit plan. We can often pre-qualify you over the phone or through a short application and issue a proof-of-funds letter before you are even under contract.

What is a point, and how do your rates compare to a bank?

A point is an upfront fee equal to 1% of the loan amount, and origination on private loans typically runs 1 to 3 points. Our rates are higher than a bank, generally in the high single digits to low teens depending on the program, because the loans are short, fast, and flexible. When you compare offers, weigh the rate and the points together as your true cost of capital.

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DSCR Loan vs Hard Money Loan

Long-term rental financing versus short-term project capital.

These two solve different problems. A DSCR loan is long-term financing for a rental you intend to hold, qualified on the property's cash flow. A hard money loan is short-term, asset-based capital for a project, like a flip or a bridge, that you plan to exit quickly. Many investors use both: hard money to acquire and renovate, then a DSCR loan to refinance and hold.

DSCR Loan

Buy-and-hold rentals

Hard Money Loan

Flips, bridges, short-term

Loan purpose

Long-term rental hold

Short-term project or bridge

Typical term

30-year amortization

6 to 18 months

Qualifies on

Property rent vs. payment (DSCR)

The asset and the deal

Payment type

Principal and interest

Usually interest-only

Speed to close

Days to a couple weeks

As few as 5 to 7 days

Best for

Stabilized, rented properties

Distressed or value-add deals

Bottom line

If the property is rented and you plan to hold it, a DSCR loan is the lower-cost long-term option. If you are buying to renovate or need to move fast, hard money gets you in, then refinance into a DSCR loan once it is stabilized.

Rates and terms shown are typical figures, subject to underwriting and market conditions. Not a commitment to lend.

Common questions

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

Yes, and it is a very common path. Investors use hard money to buy and renovate, then refinance into a long-term DSCR loan once the property is rented and stabilized, often pulling cash back out in the process.

Is hard money higher-cost than a DSCR loan?

Per month, usually yes, because hard money prices in speed and short-term risk. But you only hold it briefly. A DSCR loan has a lower rate because it is a long-term, lower-risk loan on a stabilized property.

Related comparisons

Bridge Loan vs DSCR LoanShort-term capital to reposition, then long-term money to hold.DSCR Loan vs Conventional LoanQualify on the property, or on your personal income.Hard Money vs Conventional LoanSpeed and flexibility versus the lowest-cost long-term money.

Still not sure which fits?

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