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.

Bank Statement / No-Doc · 4 min read

No-Doc Investment Property Loans: How They Work in 2026

The short answer

No-doc loans qualify on the property and reserves, not income docs. What no-ratio lending is, who it fits, and how it compares to a bank statement loan.

A no-doc loan (also called a no-ratio loan) qualifies an investor on the property, credit, and reserves rather than income documents. There is no tax return, no W-2, and no income calculation. For self-employed borrowers and full-time investors, it removes the paperwork that a bank treats as a dealbreaker.

No-doc vs bank statement vs DSCR

Bank statement loan: qualifies on 12 to 24 months of deposits.
DSCR loan: qualifies on the property's rent versus the payment.
No-doc / no-ratio: skips income entirely and leans on the asset and your reserves.

All three are business-purpose loans for investment property, so the consumer ability-to-repay rules that restrict no-doc home loans do not apply.

Who a no-doc loan fits

Investors whose returns understate their income, borrowers with complex finances, and anyone buying through an LLC who would rather not assemble a full income file. The tradeoff is a higher rate and a larger down payment in exchange for speed and simplicity.

What you will still need

A qualifying credit profile, commonly from around 640 to 680 depending on the program
Reserves to show you can carry the property
A down payment commonly in the 20% to 30% range

Frequently asked

What is a no-doc loan?

A no-doc (or no-ratio) loan is a business-purpose investment loan that qualifies on the property, your credit, and your reserves rather than any income documentation. There is no tax return or income calculation.

Are no-doc loans legal for investment property?

Yes. No-doc lending is legal for business-purpose, non-owner-occupied property. The ability-to-repay rules that restrict no-doc consumer mortgages do not apply to business-purpose loans, which is why the loan's purpose and the property's occupancy must always be stated accurately.

What credit and down payment do no-doc loans require?

Programs commonly look for a credit score from about 640 to 680 depending on the lender (USA Mortgage's bank statement / no-doc program starts at 640, subject to underwriting) and a larger down payment than a documented loan, often 20% to 30%, with the best terms going to stronger credit and more equity.

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

Bank Statement / No-Doc Rental / DSCR

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