Hard Money vs DSCR vs Bridge Loans: Which One Do You Actually Need?
Choosing the right investment loan is one of the most important decisions a real estate investor can make. Hard Money, DSCR, and Bridge Loans all serve different purposes, and using the wrong one can cost you time, money, and opportunities.
Let’s break each one down.
Hard Money Loans
Hard money is ideal for flips, full rehabs, distressed properties, or anything a bank won’t touch.
Strengths:
• Fast approvals
• Asset-based
• Short-term
• Perfect for BRRRR acquisitions
Use hard money when the property needs work or the seller demands fast closing.
DSCR Loans
The DSCR loan is built for long-term rental investors.
DSCR = Does the rent cover the mortgage?
Strengths:
• No tax returns
• 30-year financing
• Scalable
• Great for BRRRR refinances
Use DSCR when the property already cash-flows or will cash-flow soon.
Bridge Loans
Bridge loans help investors “bridge the gap” between phases—acquisition, stabilization, or waiting to refinance.
Strengths:
• Flexible
• Medium speed
• Higher leverage than traditional loans
Use bridge loans when the property isn’t distressed but also isn’t ready for long-term financing.
Final Verdict
Hard money moves fast.
DSCR builds portfolios.
Bridge loans solve timing problems.
Pick the right one, and your deal closes smoothly.
Pick the wrong one… and you’re fighting uphill from day one.
Want Help Choosing the Right Loan?
Message me for personal guidance on your next deal:
WhatsApp: +1 448-230-7488
Email: annie@insightflending.com