DSCR loans and hard money loans both serve real estate investors, but they solve different problems. Hard money is short-term (6-18 months), asset-based, and priced at 9-12% with 2-4 points — designed for fix-and-flip, quick close, or bridge situations where a conventional lender can't move fast enough. DSCR loans are long-term (30-year), income-based on the property, priced at 7-9%, and designed for buy-and-hold rentals.
Use hard money when: the property needs renovation before it qualifies for permanent financing, you need to close in 7-14 days, you're competing on a cash-offer deal, or the property is a flip you'll sell within 12 months. Use DSCR when: the property is rent-ready or currently rented, you want a 30-year fixed payment, and you plan to hold for cash flow.
The most common playbook is to use hard money to acquire and rehab a property (BRRRR method), then refinance into a DSCR loan once the property is stabilized and rented. DSCRloans.net helps clients coordinate both sides so the exit is priced in before you buy. Compare programs on our hard money loans page or start with a DSCR rate quote.