Prop Hound

Financing Options Rundown

Conventional loan. A bank loan based on your income and credit. Usually the cheapest rate, but the slowest approval and the most paperwork.
DSCR loan. Approved based on the property's rental income, not your personal income. Faster and easier once you already own property, usually a higher rate.
Seller financing. The seller acts as the bank. You pay them directly, on terms you agree to. Useful when a property won't qualify for a normal loan.
Hard money loan. Short-term, high-interest loan from a private lender. Good for a fast close or a flip, not something to hold long term.
Cash. No financing at all. Slower to save up front, but the strongest offer a seller can get, and no interest after.
Know your number before you shop lenders. Get pre-approved so you know what you can actually offer, not just what you hope for.
Compare more than the rate. Look at closing costs, points, and how fast a lender can actually close.