Loans for investors and the self-employed
Not every borrower fits a bank’s checklist. Qualify on your property’s rent, your bank deposits, or the strength of the deal itself, with DSCR, bank statement, hard money and private money loans from lenders we know well.
- DSCR loans
- Best for
- Rental property investors
- Qualifies on
- Rental income vs. the payment
- Typical term
- 30-year fixed; interest-only options
- Time to close
- About 3 to 4 weeks
- 12 or 24-month bank statement
- Best for
- Business owners, 1099 and self-employed
- Qualifies on
- Average bank deposits
- Typical term
- 30-year fixed and other terms
- Time to close
- About 3 to 5 weeks
- Hard money
- Best for
- Flippers and investors who need speed
- Qualifies on
- The property’s value and your exit plan
- Typical term
- 6 to 24 months, interest-only
- Time to close
- Often 7 to 14 days
- Private money
- Best for
- Unique properties and situations
- Qualifies on
- Equity, property and story
- Typical term
- Negotiated deal by deal
- Time to close
- Varies; can be days
DSCR loans
Qualify on the property’s rent, not your tax returns.
A debt service coverage ratio (DSCR) loan qualifies you based on whether the property pays for itself. Instead of tax returns, W-2s or a debt-to-income ratio, the lender compares the property’s monthly rent to its monthly payment.
That makes DSCR the go-to loan for investors who write off a lot of expenses, own several properties, or want to buy and hold in an LLC.
Typical DSCR guidelines
- Qualifying ratio
- Typically 1.00 or higher. Some programs go below 1.00, or use no ratio at all, with a larger down payment and more reserves.
- Credit score
- Programs commonly start around 620 to 680. Scores of 720 and up get the best pricing and leverage.
- Down payment
- Typically 20% to 25% on a purchase. Cash-out refinances are available at lower leverage.
- Reserves
- Usually several months of the property’s payment (PITIA) in the bank after closing.
- Property types
- Single-family, 2 to 4 units, condos and townhomes, plus short-term vacation rentals with many lenders.
- Ownership
- Close in your own name or in an LLC.
- Loan options
- 30-year fixed, adjustable, and interest-only periods. Purchase, rate-and-term and cash-out refinance.
- Prepayment penalty
- Common, often a 3 to 5-year step-down. A longer penalty usually earns a lower rate, and shorter or no-penalty options are available.
What you’ll need
- Purchase contract or current mortgage statement
- Lease or market rent appraisal (Form 1007)
- Two months of bank statements for down payment and reserves
- LLC documents if closing in an entity
- Photo ID and credit authorization
DSCR calculator
Meets the most common minimum of 1.00. Monthly payment (PITIA) of about $4,101.
Estimate for illustration only. Not a rate quote, loan offer or commitment to lend.
12 or 24-month bank statement loans
For self-employed borrowers whose tax returns understate their income.
If you own a business, your tax returns are built to show as little income as possible. That’s good for taxes and bad for qualifying for a mortgage.
A bank statement loan qualifies you on what actually comes into your accounts. We average 12 or 24 months of deposits to calculate your income, with no tax returns or W-2s needed.
How your income is calculated
- Business bank statements
- Eligible deposits are reduced by an expense factor to account for business costs, often 50% by default. A CPA letter or profit-and-loss statement showing lower actual expenses can reduce the expense factor.
- Personal bank statements
- Deposits into your personal account are generally treated as income after business expenses. Lenders usually ask for a couple of months of business statements to show the accounts are separate.
- 12 vs. 24 months
- Twelve months helps if your income has grown recently. Twenty-four months can average out a slow year and sometimes prices better.
- Deposits that don’t count
- Transfers between your own accounts, loan proceeds, refunds and unusually large one-time deposits that can’t be documented.
Typical guidelines
- Self-employment history
- Generally two years, verified by a CPA letter, business license or similar.
- Credit score
- Programs commonly start around 620. Higher scores improve pricing.
- Occupancy
- Primary homes, second homes and investment properties.
- Reserves
- Typically several months of payments in the bank after closing.
- Alternatives
- If bank statements don’t fit, we also offer CPA-prepared P&L, 1099-only and asset-based programs.
Bank statement income estimator
About $240,000 per year from average deposits of $40,000 per month.
Estimate for illustration only. Not a rate quote, loan offer or commitment to lend.
Built for
- Business owners and partners
- Independent contractors and 1099 earners
- Real estate agents, consultants and commissioned sales
- Doctors, dentists and other practice owners
- Gig and online business owners
Hard money loans
Fast, short-term, asset-based financing for fix-and-flip and bridge deals.
Hard money is short-term financing secured by the property itself. Approval is based mostly on the deal (the property’s value, your plan and your equity) rather than your income or credit history.
Because the lender focuses on the asset, hard money can close in days, not weeks, which lets you compete with cash buyers and take on properties a bank won’t finance.
Typical hard money terms
- Term
- Usually 6 to 24 months, with extensions available from many lenders.
- Payments
- Interest-only, with the balance due at the end of the term.
- Leverage
- Commonly 60% to 75% of current value, or up to around 70% to 75% of the after-repair value (ARV) on rehab projects.
- Costs
- Higher than bank financing. Expect origination points in addition to the interest rate. We quote the full cost in writing.
- Exit strategy
- Required up front: a sale, a refinance, or another clear way to repay.
- Occupancy
- Non-owner-occupied, business-purpose property only.
What investors use hard money for
Fix and flip
Purchase plus renovation funds, with rehab money released in draws as work is completed.
Bridge loans
Buy before you sell, or acquire and stabilize a property before refinancing into long-term debt such as a DSCR loan.
Auction and time-sensitive purchases
Close quickly when a seller or a trustee sale won’t wait.
Properties banks decline
Homes that need major repairs, non-warrantable condos, or properties with title or permit issues being resolved.
Ground-up construction
Lot purchase and construction funding for experienced builders.
Cash-out for business purposes
Pull equity from an investment property to fund your next acquisition.
Private money loans
Loans funded by private investors for deals banks won’t touch.
Private money loans are funded by private individuals, family offices and investment funds rather than banks. As a California-licensed real estate brokerage, we arrange these loans and match your deal with the private capital that fits it.
Because each loan is underwritten by a private lender, terms are negotiated deal by deal. That flexibility is the point: private money can say yes when a property, timeline or borrower doesn’t fit any bank or agency guideline.
When private money makes sense
- Land, mixed-use, and special-purpose properties
- Ground-up construction and major renovations
- Borrowers with a recent credit event, or complex or foreign income
- Second trust deeds behind an existing loan you don’t want to refinance
- Short closing deadlines, estate and partnership buyouts
- Loans larger or more complex than standard programs allow
Hard money or private money?
The terms are often used interchangeably. In practice, hard money usually refers to lenders with set programs and pricing for investors, while private money is capital from individual investors or funds with terms negotiated for each deal. We work with both and will tell you which is the better fit.
- 1
Tell us about the deal
Property, purchase price or value, the loan amount you need, timeline and how you plan to repay.
- 2
We structure and present it
We package the request and take it to the private lenders whose criteria match.
- 3
Review the terms
You receive written terms, including rate, points, term and any prepayment conditions, before you commit.
- 4
Close
Through escrow and title, with all required California disclosures.
How it works
One conversation covers all four programs. If your deal fits more than one, we’ll show you the options side by side.
- 1
Send us the deal
Property address, price or value, loan amount, timeline and your plan for the property.
- 2
Get a term sheet
We price it across our lenders and send you options in writing, usually within one to two business days.
- 3
Valuation and documents
We order the appraisal or valuation and collect the short document list for your program.
- 4
Close
Through escrow and title. Hard money and private money can close in days; DSCR and bank statement loans take a few weeks.
Common questions
What is a DSCR and how is it calculated?
DSCR stands for debt service coverage ratio. It is the property’s monthly rent divided by its monthly payment, including principal, interest, taxes, insurance and any HOA dues. Rent of $3,000 against a $2,500 payment is a DSCR of 1.20.
Do DSCR loans require tax returns or proof of income?
No. DSCR loans qualify on the property’s income. Lenders still check your credit, verify your down payment and reserves, and may ask about your experience as a landlord.
Can I close a DSCR loan in an LLC?
Yes. Most DSCR programs allow you to close in an LLC or other business entity, usually with a personal guarantee.
How is income calculated on a bank statement loan?
The lender averages eligible deposits over 12 or 24 months. Business account deposits are reduced by an expense factor, often 50% unless a CPA documents lower expenses. Personal account deposits are generally counted as income.
Can I use a bank statement loan to buy my primary home?
Yes. Bank statement loans are available for primary homes, second homes and investment properties.
Can I use hard money to buy a home to live in?
No. Our hard money and private money loans are for business-purpose, non-owner-occupied property only. For a home you’ll live in, we’ll find you a conventional, government or bank statement loan.
How fast can a hard money loan close?
Often in 7 to 14 days once we have the property information and a valuation, and sometimes faster for repeat borrowers.
What’s the difference between hard money and private money?
Hard money usually means lenders with set programs for investors. Private money is capital from individual investors or funds, with terms negotiated deal by deal. Both are short-term, asset-based and faster than banks.
What is an exit strategy?
Your plan to repay a short-term loan, typically by selling the property or refinancing it into a long-term loan such as a DSCR loan. Hard money and private lenders require one before they fund.
Guidelines shown are typical ranges across our lenders, change frequently and are not a commitment to lend. DSCR, hard money and private money loans are business-purpose loans for non-owner-occupied investment property. Private money loans are arranged by Greenflash Realty Inc. dba Strategic Equities, California DRE #01852513, NMLS #237415, and are subject to the lender’s approval and all required disclosures.
Have a deal in front of you?
Apply online or call us. We’ll tell you which program fits and what it will cost, in writing.