Texas real estate investors often choose between hard money loans and DSCR loans. Both skip personal income verification — but they serve different purposes. Here’s how to choose.
Quick Comparison
| Hard Money | DSCR Loan | |
|---|---|---|
| Rate | 9.5%–12% | 7.25%–9.5% |
| Term | 12–24 months | 30-year amortization |
| Close Time | 7–14 days | 14–21 days |
| Credit | Not required | 620+ preferred |
| Tax Returns | Not required | Not required |
| Qualification | Property value (LTV) | Property cash flow (DSCR ≥ 1.0x) |
| Best For | Fix-flip, fast acquisitions | Stabilized rentals, long-term hold |
When to Choose Hard Money
- You need to close in under 14 days
- The property needs renovation before it cash flows
- You have bad credit or no credit history
- You’re competing against cash buyers
- You plan to flip or refinance within 12-24 months
When to Choose a DSCR Loan
- The property already has tenants and cash flow
- You want a 30-year term with no balloon
- You’re a buy-and-hold investor
- You want a lower interest rate
- You have a DSCR ratio of 1.0x or higher
Can You Use Both?
Yes — and many Texas investors do. Use a hard money loan to acquire and renovate quickly, then refinance into a DSCR loan once the property is stabilized. This is the BRRRR strategy (Buy, Rehab, Rent, Refinance, Repeat) and we fund both legs.
Call 877-895-3634 for a same-day quote on either program.