A DSCR (Debt Service Coverage Ratio) loan is a real estate investment loan where approval is based primarily on the property’s rental income—not the borrower’s personal income, tax returns, or W-2s. Lenders calculate the DSCR by dividing the property’s annual net operating income (NOI) by its annual debt obligations. For example, a DSCR of 1.25 means the property produces 25% more income than is needed to pay the mortgage. This type of loan is popular with investors who have multiple properties, complex finances, or non-traditional income sources, because it allows them to qualify using property cash flow alone.

DSCR Loan – Fast Facts

• No Tax Returns or W-2s Required – Qualification is based on property income, not personal income.
• Ideal for Investors – Works well for self-employed borrowers, multiple property owners, or those with complex finances.
• Cash Flow Driven – Approval hinges on rental income vs. mortgage payment, not credit score alone.
• Nationwide Availability – Many lenders offer DSCR loans for both short-term and long-term rentals.
• Flexible Terms – Options for 30-year fixed, interest-only, or adjustable-rate structures.

A fix and flip loan is a short-term loan used by real estate investors to purchase and renovate a property for quick resale. It’s designed for projects with a defined timeframe, focusing on the property’s after-repair value (ARV).

A bridge loan is a short-term loan that helps cover the gap between immediate financial needs and long-term financing. These loans are commonly used in real estate transactions, such as purchasing a new property before selling an existing one. Bridge loans often have higher interest rates due to their short-term nature and the flexibility they provide.

A hard money loan is a type of short-term financing secured by real estate. These loans are typically offered by private investors or companies, not traditional lenders, and are often used for fix-and-flip projects, real estate investments, or situations where quick funding is required. Hard money loans are asset-based, meaning approval focuses more on the value of the property than the borrower’s creditworthiness.

A commercial loan is a type of financing designed specifically for businesses rather than individual consumers. These loans are often used to purchase business assets such as real estate, equipment, or inventory, or to cover operational costs. Businesses typically qualify based on their revenue, credit history, and financial stability.

A line of credit offers flexible funding that can be used for various purposes, including home renovations, covering unexpected expenses, purchasing inventory, or managing cash flow for your business. Unlike a traditional loan, you only pay interest on the amount you draw, making it a versatile tool for ongoing financial needs.

Secured Loan 

A secured loan is backed by collateral, like property or equipment. If the borrower doesn’t repay, the lender can take the collateral to recover the loan. Since this lowers the lender’s risk, secured loans usually have lower interest rates and longer repayment terms.

Unsecured Loan 

Unsecured loans don’t require collateral. They’re granted based on the borrower’s credit score and financial strength. However, because they’re riskier for lenders, unsecured loans often come with higher interest rates and shorter repayment times.

Use your accounts receivable to access immediate cash for your business—no equity dilution, no extra debt. Simple, fast, and flexible.

To qualify for an SBA 7(a) loan, your business must operate for profit, fall within the size standards set by the SBA, and operate within the United States. Additionally, you must demonstrate a need for financing and a sound business purpose. Some restrictions, such as industry type and creditworthiness, may apply. Check the SBA’s official eligibility guidelines or speak with a lender for further details.

Equity contributions typically range between 10-20% of the total loan amount, depending on the lender’s requirements, the size of the loan, and the specifics of your business plan. It’s best to consult your lender for exact guidelines regarding equity contributions for your situation.

Rates for SBA 7(a) loans are based on the prime rate, plus an additional percentage set by the lender (referred to as a “spread”). The spread depends on factors such as the loan amount and repayment terms. To get the most accurate and up-to-date rates, check the current prime rate and consult with an SBA-approved lender.

Loan maturities for SBA 7(a) loans vary depending on the use of funds:

• Working Capital & Inventory Loans: Up to 10 years 
• Equipment Purchases: Up to 10 years or based on the equipment’s life expectancy 
• Real Estate: Up to 25 years 

Speak with your lender to understand which terms apply to your loan’s purpose.

The timeline to close an SBA 7(a) loan can vary based on several factors, including the lender’s efficiency and how quickly required documents are provided. On average, it takes 45–90 days to close an SBA 7(a) loan, but working with an experienced lender and preparing all necessary paperwork upfront can help speed up the process.

Short-Term Bridge Loan

• Term: 12-Month & 18-Month Loans 
• Loan Amount: $75,000 to $3M 
• Minimum Property Value:
  • $75,000 for 1-4 Family Properties 
  • $50,000 per unit for 5+ Unit Multis 
• Rates: Starting at 9.24% 
• LTV Requirements:
  • Purchase: Up to 80% of the As-Is Value 
  • Refinance: Up to 75% of the As-Is Value 
  • Cash-Out: Up to 70% of the As-Is Value 
• Property Types:
  • Residential (1-4 Units) 
  • Condos 
  • Townhomes 
  • 5+ Unit Apartments 
  • Mixed-Use Properties 
• Occupancy: Non-Owner Occupied 
• Minimum FICO: 650 

After Repair Value (ARV) Loan Program

• Term: 12 Months 
• Loan Amount: $75,000 to $2M 
• Minimum After Repair Value: $100,000 
• Rates: Starting at 9.24% 
• LTV Requirements:
  • Up to 75% of the After Repair Value 
  • LTC (Loan-to-Cost): Up to 95% of Purchase Price, Up to 100% of Rehab Costs 
• Minimum FICO: 650 
• Property Types:
  • Residential (1-4 Units) 
  • Condos 
  • Townhomes 
  • 5+ Unit Apartments 
• Occupancy: Non-Owner Occupied 
• Extra Features:
  • Termination Fee of 1% After Month 9 
  • No Pre-Pay Penalty 
  • Experience Not Required (but impacts pricing and leverage) 

Long-Term Rental Loan Program

• Term: 30 Years 
• Loan Amount: $150,000 to $2M 
• Minimum Property Value: $115,000 
• Rates: Starting at 5.50% 
• LTV Requirements:
  • Purchase: Lesser of Up to 80% of the As-Is Value or Up to 80% Loan-to-Cost 
  • Refinance: Up to 80% 
  • Cash-Out: Up to 75% 
• Property Types:
  • Residential (1-4 Units) 
  • Condos 
  • Townhomes 
  • Planned Unit Development (PUD) 
• Pre-Pay Penalty: Adjustable Up to 5 Years 
• Minimum FICO: 680 

Long-Term Rental Multi-Family Loan Program

• Term: 30 Years 
• Loan Amount: $150,000 to $1.5M 
• Rates: Starting at 6.50% 
• LTV Requirements:
  • Purchase: Lesser of Up to 70% of the As-Is Value or Up to 70% Loan-to-Cost 
  • Refinance: Up to 70% 
  • Cash-Out: Up to 65% 
• Property Types:
  • Non-Owner Occupied Multi-Family Real Estate (5+ Unit Apartments; Maximum 9 Units) 
• Pre-Pay Penalty: Adjustable Up to 5 Years 
• Minimum FICO: 700 

New Construction Loan Program

• Term: 12-24 Months 
• Loan Amount: $100,000 to $2M 
• Rates: Starting at 9.84% 
• LTV Requirements:
  • Purchase and Refinance:
    • Up to 75% of Initial Advance 
    • Up to 90% Total Loan-to-Cost 
• Property Types:
  • Non-Owner Occupied Single-Family Properties 
  • Condos 
  • Townhomes 
• Pre-Pay Penalty: N/A 
• Minimum FICO: 650 

Expedited Financial Solutions requires a minimum FICO score of 650 for its Bridge and New Construction loans. The After-Repair Value program also requires a 650 minimum, while the Long-Term Rental program demands a higher minimum of 680. Borrowers’ credit scores are carefully reviewed during underwriting to assess financial management history and align with their exit strategies, especially for buy-and-hold scenarios. 

If you are a current Expedited Financial Solutions client, please contact your loan officer directly with any questions.

If you are a new client, you can contact Expedited Financial Solutions by phone through our general number: 1-855-EFS-LOAN or by email: Info@expeditedfs.com.

Determining the right financing option for your business starts with understanding your needs, like how much you need, why you need it, and how quickly. Explore options like bank loans, government programs, or alternative lenders, and compare their costs, terms, and requirements.  

Not sure where to start? Expedited Financial Solutions can help. We specialize in matching businesses to the right lenders, offering personalized advice based on your industry and financial situation. With access to a wide range of lenders, we simplify complex choices and find sustainable solutions for your business’s growth.