Hard Money
& DSCR FAQ

A hard money loan is short-term, business-purpose financing commonly used by real estate investors. Underwriting usually focuses heavily on the property, the purchase price, the renovation plan, the after-repair value and the borrower’s exit strategy—not only personal income.

Depending on the lender and the deal, hard money may be used for fix-and-flip purchases, investment-property acquisitions, bridge financing, renovation projects, or refinancing an existing investment property. Program availability varies.

Blitz focuses on business-purpose real estate investment transactions. Hard money programs presented through Blitz are not intended for a borrower’s primary residence or other consumer-purpose use.

Lenders may consider the purchase price, current value, after-repair value (ARV), rehab budget, comparable sales, property condition, borrower experience, credit profile, liquidity and exit strategy. Guidelines differ by lender and loan program.

• LTV is loan-to-value: the loan amount compared with the property’s value.
• LTC is loan-to-cost: the loan amount compared with the total project cost.
• ARV is after-repair value: the estimated value after the planned work is completed.

The lender determines which measurement controls the final loan amount.

Some programs can finance eligible renovation costs. These funds are often released through draws after required work is completed and verified. The lender may require a detailed scope of work, budget, permits, inspections, receipts or lien waivers.

It may be. Hard money is often described as asset-based, but many lenders still review credit, background, experience, liquidity and the borrower’s overall ability to complete the project. A property alone does not guarantee approval.

Closing time depends on how quickly the borrower supplies complete information and how quickly the appraisal or valuation, title work, insurance and underwriting conditions are completed. Blitz does not promise a specific closing date until the financing lender confirms it.

Costs may include interest, origination points, underwriting or document fees, appraisal or valuation fees, title and closing costs, insurance, extension fees and—on some programs—prepayment charges. Final pricing comes from the financing lender and the closing documents.

A Debt Service Coverage Ratio loan is generally designed for income-producing rental properties. Instead of qualifying primarily from the borrower’s personal employment income, the lender evaluates whether the property’s qualifying rent can support the proposed housing payment.

DSCR compares qualifying rental income with the property’s required debt payment. A ratio of 1.00 generally means the qualifying rent equals the measured payment. Each lender decides which income, expenses and payment components are used in its calculation.

A lender may use a current lease, appraisal market-rent schedule, operating history or a combination of documents. The lender—not Blitz—determines the qualifying rent used for underwriting.

Many DSCR programs do not qualify the loan using traditional personal income documentation. However, lenders may still require credit, asset, entity, property and business-purpose documentation, plus any additional information needed to meet their guidelines.

Many investor DSCR programs allow or require an eligible business entity. The lender may review formation documents, good-standing records, ownership, operating agreements and guarantor information. Entity rules vary by lender and state.

Common eligible properties can include non-owner-occupied single-family rentals, condos, townhomes and some 2–4 unit properties. Short-term rentals, multifamily, mixed-use, vacant properties and other property types may have separate requirements or limited lender options.

Some lenders offer lower-DSCR or no-ratio options with different leverage, credit, reserve or pricing requirements. Availability depends on the property, borrower profile and current lender guidelines.

Potentially. Investors often explore DSCR refinancing after renovating and stabilizing a rental. The lender will review property condition, value, rent, seasoning, title history, completed work and cash-out rules before approving the refinance.

Many DSCR programs require cash reserves, and some include a prepayment penalty. The amount, calculation and permitted structure depend on the lender, loan terms and applicable law. Review the final loan documents carefully.

Blitz Lending & Servicing helps investors structure their request and match the opportunity with financing lenders. The lender that receives the request completes its own underwriting and makes the final credit and funding decision.

We use the information you provide to understand the deal and connect or match you with potential financing lenders. A financing lender may request or require more information and documentation than what Blitz initially collects.

Be ready to provide borrower and entity information, property address, purchase contract, current value or estimated ARV, renovation scope and budget, expected rent, experience, liquidity, credit authorization, title or insurance contacts, and a clear exit strategy. Required items vary by program.

No. An inquiry, lender match, term summary or conditional pre-approval is not a final approval or commitment to lend. Financing remains subject to verification, valuation, title, underwriting, lender requirements, acceptable documents and final approval.

Submit the lending inquiry, call 214-432-2461, or schedule an appointment at our Dallas office: 3106 Commerce St. #100, Dallas, TX 75226.