Frequently Asked Questions
Everything you need to know about hard money loans, DSCR rental financing, and how Investor1st Funding works.
What is a hard money loan?
A hard money loan is a short-term, asset-based loan secured by real property. Unlike traditional bank loans, hard money loans are underwritten primarily based on the property value (ARV), not the borrower's income or credit score. They are commonly used for fix and flip investments, bridge financing, and situations where traditional financing is too slow or unavailable.
What is a DSCR loan?
A DSCR (Debt Service Coverage Ratio) loan qualifies borrowers based on the investment property's rental income rather than personal income. The DSCR ratio is calculated by dividing the monthly rent by the total monthly debt obligations. A ratio of 1.0 or higher typically qualifies.
How fast can you close a hard money loan?
We work with lenders who can close in as little as 7 business days for straightforward deals where the property appraisal, title work, and borrower documentation are in order. More complex transactions may take 14–21 days.
Do you require income verification?
For fix and flip (hard money) loans, we do not require income verification or tax returns. Qualification is based on the property's after-repair value and the borrower's experience. For DSCR rental loans, qualification is based on the property's rental income, not personal income documents.
What credit score is required?
We work with lenders who consider credit scores as low as 620. First-time investors and borrowers with credit challenges are evaluated case by case.
What states do you lend in?
We have access to lenders covering 44 states across the US. We have particular depth in Michigan, Texas, Florida, Georgia, and Ohio. Contact us to confirm availability in your market.