Fix & Flip vs. DSCR
One is built to buy, fix, and sell. The other is built to buy and hold. Both are business-purpose investor loans.
Fix & Flip
DSCR
Best for
Buying a rough house, renovating it, and selling
Holding rental property for the long term
Down payment
0 to 10% depending on the project
Up to 80% LTV, so about 20% down
How you qualify
The deal itself, no experience needed
The property's rent, FICO from 620
Includes rehab money
Yes, purchase and rehab in one loan
No, it is for properties ready to rent
Speed
3 to 5 days, and no appraisal on most deals
Investor loans close in 3 to 5 days
Watch out for
Short-term loan, so your exit plan matters
The rent has to support the payment
Our take: Flipping? Fix & Flip. Renting? DSCR. Doing both in sequence is called BRRRR, and yes, we do that too.
