There are many different types of investment loans for real estate. Among the most popular are Hard Money Loans and Debt Service Ratio Loans (DSCR Loan).
Hard money loans are typically short term loans, with loan terms of about 1 year are often used to finance fix and flip properties. These loans carry more risk so tend to be cost more and have higher interest rates. If you’re looking at to flip a house as an investment, this is often a great loan choice if you cannot pay cash.
DSCR Loans, or Debt Service Ratio Loans, are loans that are designed for savvy real estate investors who do not want have loans appear on their personal credit reports. These loans are used to finance rental properties, and qualification for the loan is generally dependent on whether the property will cash flow or not.
