Terms vary by lender guidelines, property type, leverage, credit profile, and full file review.
The Quick Read: At a 660 credit score, a hard money cash-out refinance fits a property that needs short-term, exit-driven capital because it is sized on collateral value, while a DSCR cash-out refinance fits a leased, stabilized rental you plan to hold because it is sized on rent coverage and equity, with your score setting the leverage tier on both. Exact terms depend on the lender’s guidelines, property type, leverage, and a full review of the borrower’s file.
- A 660 score clears the hard money minimum of 620 (with extra conditions below 660) and sits at the level most DSCR programs ask for.
- Hard money cash-out runs up to 65% of value, with 6-18 month interest-only terms. DSCR cash-out is sized differently, on rent coverage and a leverage tier set by the lender rather than on the hard money value ceiling, and the available tier depends on the property and the file.
- DSCR needs a property that can show rent. Hard money can work on a property that cannot.
- A 700+ score opens the strongest DSCR leverage tiers, so 660 is a workable middle tier rather than the top one.
- Both are business-purpose loans on investment property, and both are reviewed file by file, subject to lender guidelines.
The Honest Answer First
Neither product is the “right” one in the abstract. The better choice depends on what the property is doing today and what you plan to do with it.
Hard money is for the investor whose property is vacant, unfinished, or not yet earning rent. It also suits the investor who has a clear plan to sell or refinance within a year. DSCR is for the investor whose property is leased or rent-ready and who wants financing to hold. A 660 score is workable for both. It will not be what wins or loses the file at 660, but it can shape how much leverage you are offered.
Across the wholesale network Lendmire works with, credit sets the tier, the property sets the lane, and the exit plan decides whether a short-term loan makes sense at all.
Side-by-Side
The table below shows how the two products differ in structure. The hard money column reflects the network’s current hard money program. The DSCR column reflects the network’s DSCR program. Both vary by lender, property, and borrower experience, and neither is a commitment to lend.
| Factor | Hard Money Cash-Out | DSCR Cash-Out |
|---|---|---|
| Review basis | Property value, plan, and exit | Rent coverage, equity, credit |
| Role of a 660 score | Clears the 620 floor; extra conditions apply below 660 | Meets the typical bar; 700+ unlocks top tiers |
| Documentation focus | Collateral, project, exit strategy | Lease or rent estimate, appraisal, credit, assets |
| Property types | Non-owner-occupied residential, 1-4 units | Rental residential; manufactured, log, barndominium not offered |
| Term structure | 6-18 months, interest-only | 30-year fixed spine; longer terms select |
| Reserves | Varies by lender and file | Commonly around 6 months of PITIA |
Timeline is the one row left out on purpose. How long a file takes depends on the lender, the appraisal, and how complete the documents are, so no honest table can promise a number.
What a 660 Score Changes in Practice
A 660 score changes tier placement and conditions more than it changes eligibility. On the hard money side, the program starts at 620, and scores below 660 carry additional conditions. At 660 you are past that line. Underwriting stays asset-based, which means the property, the plan, and the exit still carry the file.
On the DSCR side, a 620 floor exists in parts of the network, most programs want around 660, and 700+ unlocks the strongest leverage tiers. So 660 is typically a mid-tier file. It can work well on a cash-out refinance at standard leverage, but a borrower at 700 or higher may see more room on leverage, and a borrower below 660 may see tighter terms.
Market surveys report that hard money loans are typically sized at roughly 65-75% of collateral value with repayment expected in one to five years, per Corporate Finance Institute. The network’s hard money cash-out program is more conservative on both counts. It runs up to 65% of value, with terms of 6-18 months, interest-only, and no prepayment penalty. There are no multi-year options on that program.
DSCR cash-out refinances commonly top out around 75% LTV on standard long-term rentals across most of the network. About six months of seasoning is the common expectation. Short-term-rental collateral is treated differently, with cash-out capped at 70%, a 640+ score expected, and about 12 months of hosting history.
How Each Loan Is Underwritten
A hard money lender asks whether the collateral is worth enough and whether you can repay. The loan is short, so the central question is how it ends. A sale, a refinance into long-term debt, or a payoff from other funds can each work. A vague exit is the weakest part of a hard money file.
A DSCR lender divides monthly rent by the full monthly obligation, meaning principal, interest, taxes, insurance, and any HOA dues. That ratio is the coverage number. Many select programs start at 1.00, and stronger coverage can open better terms and leverage. A separate select-lender path goes below 1.00 with leverage and terms adjusted. Neither path is a promise.
One caution applies to both readers. DSCR compares rent to the monthly obligation only. A property that clears 1.00 is not necessarily producing positive cash flow, because repairs, vacancy, management, utilities, and capital expenses sit outside the calculation. Plan for those separately.
DSCR loans are designed for non-owner-occupied investment properties. Because they are business-purpose investor loans, they are reviewed differently from a standard owner-occupied mortgage. The CFPB’s Regulation Z business-purpose rules turn partly on how the proceeds are used. Cash-out money spent on personal or consumer purposes can change that analysis, so keep the use of funds tied to the investment.
When a Hard Money Cash-Out Refinance Is the Better Fit
Hard money is the better fit when the property cannot yet show rent, or when you need the equity for a defined, temporary purpose.
Vacant or unfinished properties. A DSCR file needs a lease or a credible rent estimate on a property that is rent-ready. If a unit is gutted, mid-renovation, or sitting empty, a rent-based loan has nothing to measure. Hard money looks at the property’s value and your plan instead.
A short, defined runway. The program runs 6-18 months interest-only with no prepayment penalty. If you intend to sell, finish a project, or stabilize the property within that window, you are not paying for long-term structure you will not use.
A coverage gap you are actively fixing. Say a duplex rents below what its debt would require today, but rents are scheduled to reset after renovation. Hard money can bridge that stretch. Many investors then refinance out of hard money into long-term DSCR financing once the property is stabilized, a path Lendmire brokers.
The tradeoff. Leverage on a hard money cash-out is lower, up to 65% of value, so you may get less cash out than you expected. The loan also ends, and it ends on a schedule you do not control. If the exit fails, you face a maturity problem. If your exit depends on a refinance, you also need to qualify for that refinance later.
When a DSCR Cash-Out Refinance Is the Better Fit
DSCR is the better fit when the property is leased or rent-ready and you want to keep it. The structure is built for holding.
Stabilized rentals with equity. A leased single-family rental or small multifamily with solid equity can fit the DSCR lane well. Consider a stabilized rental with rent covering the full monthly obligation at roughly 1.2x, with a 660 score and a request at 75% LTV. That file clears the common tests: equity, coverage, credit in the typical range, and a standard property type. Reserves, appraisal, and lender overlays still apply. Every figure here varies by lender and program — guidelines, property type, leverage, and credit profile all apply.
Higher leverage than a hard money cash-out. On standard rentals, DSCR cash-out can reach higher leverage than the 65% of value that hard money typically allows on a cash-out or refinance. Hard money can go higher on purchases and rehabs, but there leverage is measured against project cost rather than value. For an investor pulling equity to buy the next property, that difference in value-based leverage can matter. Final terms depend on lender guidelines, property type, leverage, and the borrower’s complete credit picture.
Long-term financing you do not have to exit. The spine is a 30-year fixed structure. Extended terms (40-year) and interest-only periods are available through select lenders in the network, and ARM structures exist for investors who want them. There is no refinance deadline hanging over the property. Loan sizes run up to $3,000,000 on standard programs, with smaller balances available through select lenders, and above $2,500,000 the network generally holds to 30-year fixed structures.
Entity ownership and portfolio growth. DSCR is not tied to your personal income, so it scales when an investor holds several properties in LLCs, subject to lender program eligibility. For investors building a larger portfolio, qualifying on rental income can extend past the point where personal debt-to-income ratios become limiting. Our DSCR cash-out refinance guide covers the mechanics in more detail.
The tradeoff. DSCR is not a shortcut around credit or equity. A larger down payment or more equity lowers the monthly obligation and can lift coverage. It never erases leverage caps, credit floors, reserve rules, or property eligibility. The strongest files clear both tests, enough equity and enough rental coverage. A property that cannot yet cover its debt is the wrong fit for DSCR today, even if the equity is large.
If coverage lands below 1.00, programs below that level are available through select lenders in the network, with leverage and terms adjusted. Treat that as a deliberate structural choice, not a rescue. If you are reaching for it because the numbers do not work at any property you can find, reconsider the property before reconsidering the loan type.
A Quick Decision Guide for a 660 Borrower
Match the property’s status to the lane.
- Vacant or heavy rehab: hard money, with a written exit plan.
- Leased with solid coverage and equity: DSCR cash-out at standard leverage.
- Leased but thin coverage: either improve rents or reduce the request; a select-lender path below 1.00 exists with adjusted leverage and terms.
- Short-term rental with hosting history: DSCR with STR-specific limits, which are 70% on cash-out and about 12 months of hosting history.
- Large equity, no rent: hard money may be the only fit until rent exists.
An investor who falls in more than one row may start with hard money and later refinance into DSCR once the property is stabilized and can show rent.
The Purpose Test Runs Both Ways
Both products depend on the loan being for a business purpose. The purpose of the loan, not just the property type, drives the analysis. A rental is not automatically exempt if the money is going to a personal use. Tax treatment varies; consult a qualified professional.
For a 660-score borrower, that is a reason to keep the use of proceeds documented and tied to the investment. It applies equally to a short bridge and to a long-term loan.
Key Terms Defined
Seasoning: the time you have owned the property, or held a loan on it, before a lender will let you cash out. About six months is the common expectation on DSCR cash-out files.
DSCR (debt service coverage ratio): monthly rent divided by the full monthly housing obligation, including principal, interest, taxes, insurance, and any HOA dues.
PITIA: principal, interest, taxes, insurance, and association dues, the monthly obligation used in the coverage calculation.
LTV (loan-to-value): the loan amount as a percentage of the property’s appraised value. Each program names its own cap by transaction type.
Exit strategy: the plan for repaying a short-term loan, typically a sale or a refinance into long-term financing.
Which One? A Balanced Verdict
If the property earns rent and you plan to hold it, DSCR is usually the better structural match at a 660 score. It typically offers more leverage on a cash-out, a long-term structure, and no maturity deadline. If the property cannot earn rent yet, or your plan is short and defined, hard money is often the more realistic lane, accepting lower leverage and a loan that must end.
The flip point is the property’s rent profile. When coverage improves, or when the exit plan becomes a long-term hold, the argument tilts toward DSCR. When rent is absent or the timeline is short, it tilts toward hard money. Pairing them in sequence can make sense for some investors, but it adds a second qualification, so confirm that the later step is realistic before committing to the first. The complete DSCR loans guide lays out how the long-term side works.
If you are buying, rehabbing, or refinancing an investment property and want to see how the numbers work, Lendmire can help you compare hard money options based on the project, the exit plan, leverage, and your goals. Reach the team at 828-256-2183.
Frequently Asked Questions
Is a 660 credit score enough for a hard money cash-out refinance?
Typically yes at the program level, with conditions. The network’s hard money program has a 620 minimum, with additional conditions below 660, so 660 clears that line. Underwriting still rests on the property, the plan, and the exit. Every file varies by lender, property, and experience.
Do DSCR loans ignore credit?
No. Credit is one of the main qualifiers alongside equity, reserves, and coverage. A 620 floor exists in parts of the network, most programs want around 660, and 700+ unlocks the strongest leverage tiers. A property that covers its debt well does not remove the credit review.
Can I refinance out of a hard money loan into DSCR financing?
Often, once the property is stabilized and can show rent. You would need to meet the DSCR program’s credit, equity, reserve, and property rules at that time. Lenders commonly expect a seasoning period before a cash-out, and about six months is the common expectation.
What if my rent does not cover the payment at 1.00?
Programs below 1.00 are available through select lenders in the network, with leverage and terms adjusted. The alternatives are raising rent, putting more equity into the deal, or using a hard money bridge until the property is stabilized. Clearing 1.00 is also not the same as positive cash flow, since repairs, vacancy, and management sit outside the ratio.
Does a bigger cash-out request make a 660 file harder?
Generally yes, because the request pushes LTV toward the cap. DSCR cash-out caps sit lower than purchase leverage, and short-term rentals are typically held to a tighter cap than standard rentals. Hard money cash-out is limited to 65% of value. A smaller request leaves more room if coverage or reserves are tight.
About Lendmire
As a DSCR and non-QM mortgage broker, Lendmire — NMLS# 2371349 — connects investors with wholesale lending channels across 41 markets, including Washington, D.C. The property’s rental income, not the borrower’s tax returns, is central to lender review, which works for self-employed operators and portfolios beyond four financed properties. Scotsman Guide named Lendmire a Top Mortgage Workplace in both 2025 and 2026.
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References
1. Corporate Finance Institute, Hard Money Loan
2. CFPB, Regulation Z §1026.3, Exempt Transactions
This article is part of Lendmire’s hard money loan program — full qualification details, guidelines, and scenarios live on the program page.
Related reading: How to Get a DSCR Cash-Out Refinance When a Conservator Manages the Rental · What a DSCR Cash-Out Refinance Does With Your Seller-Financed Note? · Can You Get a DSCR Cash-Out Refinance If You Plan to Move Into the Rental?
Brandon Miller
Founder & CEO, Mortgage Loan Originator, Lendmire LLC
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Required disclosures. Lendmire (NMLS# 2371349) operates as a licensed mortgage broker, not a direct lender or depository. The discussion in this article is general in nature and should not be relied upon as financial, legal, or tax advice — every investment scenario is unique and should be reviewed by a qualified professional. Any loan inquiry is subject to lender underwriting, and this article is not a commitment to lend or a guarantee of approval. Mortgage rates, loan terms, and program guidelines vary by borrower, property, and state, and may change without notice. Equal Housing Opportunity. Verify licensure at NMLS Consumer Access.