DSCR Loans
DSCR vs Hard Money
DSCR is long-term rental financing that qualifies on the property’s income. Hard money is short-term, higher-cost capital used to acquire or fix a property fast, usually repaid by a sale or refinance.
Where they differ
| Horizon | DSCR: long hold · Hard money: short term |
| Qualification | Both lean on the property |
| Cost | Hard money prices speed and risk |
| Best fit | DSCR: stabilized rentals · Hard money: rehabs and auctions |
A common pairing
- Hard money to acquire and renovate
- Stabilize and lease the property
- Refinance into a DSCR loan for the long hold
Used in sequence, the two solve acquisition speed and long-term cost at the same time.
Frequently asked questions
Why is hard money pricier?
It prices a short timeline and higher-risk collateral, and is meant to be repaid quickly.
Do DSCR loans require income docs?
No — qualification is property-based.