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.

Rental / DSCR · 5 min read

DSCR vs Conventional Loan: Which Is Better for Investment Property?

The short answer

DSCR vs conventional loan for investors: they qualify you very differently. Compare documentation, speed, cost, and property limits to pick the right one.

Both a DSCR loan and a conventional investment loan can finance a rental, but they qualify you in opposite ways. The right choice depends on your tax returns, your timeline, and how many properties you already own.

How they qualify you

Conventional — qualifies on you: tax returns, W-2s, debt-to-income ratio, and how many financed properties you hold.
DSCR — qualifies on the property: does the rent cover the payment? No tax returns required.

Cost and terms

Conventional is usually the lowest-cost long-term money when your file fits the box, in exchange for full documentation and tighter limits. DSCR carries a modestly higher rate but trades it for speed, privacy, and no cap on the number of properties.

When to choose each

Choose conventional if you have clean, documentable income, are early in your portfolio, and want the lowest-cost rate.
Choose DSCR if your returns understate your income, you buy through an LLC, you have hit conventional property limits, or you need to close fast.

You don't have to guess

We underwrite both and will compare them side by side on your actual deal so you take the structure that fits, not just the one a single lender happens to sell.

Frequently asked

Is a DSCR loan better than conventional?

Neither is universally better. Conventional is usually lower-cost if you can document income and your file fits the box; DSCR is faster, qualifies on the property, and has no property-count cap.

Can you refinance a DSCR loan into a conventional loan later?

Often yes, if your situation changes and the property and your file qualify conventionally. Many investors move between the two over time.

Do DSCR loans have higher rates than conventional?

Usually modestly higher, in exchange for speed, no income documentation, and qualifying on the asset instead of you.

Rates, leverage, and timelines mentioned in this guide are typical figures, subject to underwriting and market conditions. Not a commitment to lend. Nothing here is legal, tax, or investment advice.

Related programs

Rental / DSCR Conventional Investment Bank Statement / No-Doc

Compare your options

DSCR Loan vs Hard Money Loan DSCR Loan vs Conventional Loan

Ready to put this to work?

Get real terms, usually same day. No obligation, no hard credit pull to start.

Apply now Talk to us