What is the difference between a DSCR loan and a hard money loan?
A DSCR loan is long-term rental financing sized on the property's rent; a hard money loan is short-term, asset-based capital for buying and fixing a property. At Silt the DSCR program amortizes over 30 years and is built to hold a stabilized rental, with 80% purchase leverage and a 1.00 DSCR floor. The short-term side — what the market calls hard money — is our fix and flip and bridge programs: interest-only for 12–24 months on a flip, sized on cost and after-repair value rather than rent. The two are often used in sequence. An investor buys and renovates with short-term money, leases the property, and then refinances into a DSCR loan once rent is in place and the value is supported. Choosing between them is mostly a question of whether the property earns rent today or needs work before it can.
RELATED QUESTIONS
- Can I get a DSCR loan with no income?
- What is the minimum credit score for a DSCR loan?
- How is DSCR calculated with vacancy?
- How is the DSCR ratio calculated on a rental loan?
Last reviewed 19 October 2026 · Terms are illustrative, not a commitment to lend; every loan is subject to underwriting.