It’s a truth universally acknowledged by mortgage professionals that the real estate market is cyclical. And at this point in time, the industry is experiencing a slowdown thanks to the buyer-seller standoff as a result of rising mortgage rates. With buyers playing it safe, that means investors now have an opportunity to tap into a new segment of the population and invest in multifamily properties to earn a profit this year.
That’s where our innovative Investment Achiever Debt-Service Coverage Ratio (DSCR) loan program can help.
At Stronghill Capital, we’ve designed a flexible loan solution to help real estate investors secure strong mortgage financing for short and long-term rental properties. Whether they want to invest in single-family or multi-unit (5-10 units) rental properties, our team is equipped to help meet your clients’ unique mortgage needs.
The best part? Adopting this innovative solution to your product offerings will help you diversify your mortgage business and reach more borrowers who require more flexible financing options.
Here’s a closer look at the solution that’s helping brokers like you generate more income this year.
Understanding DSCR
DSCR (Debt-Service Coverage Ratio) loans offer investors an alternative way to qualify for mortgage financing without providing tax returns or other income documentation typically required from traditional lenders.
Instead of tax returns, we evaluate the property’s cash flow by comparing the income generated by the property to the overall debt-service of the property. By analyzing the property’s potential rental income, our team at Stronghill can measure whether the property has the ability to generate enough income to cover the housing payment obligation.
Here’s a closer look at what qualifies for our multifamily (5-10 unit) and mixed use (2-8 unit) DSCR program:
- Minimum DSCR: 1.0
- LTVs up to 75%
- Purchase, Rate/Term, and Cash-Out Refinance Options
- No borrower income or employment information required
- Fixed, ARM, and Interest Only term options
- Eligible borrowers include individuals or entities*
*LLC, S-Corp, C-Corp, and Partnerships
A Solution for Investors
While some investors may meet all the traditional lender requirements, not all have the ability to close a deal with strong pricing and terms. Our Investment Achiever DSCR program is different. We’ve designed it for investors to provide both strong pricing and flexible financing.
DSCR solutions work for both first-time investors or experienced investors who are looking to expand their investment portfolios. With our competitive pricing, innovative underwriting approach, and our team of Non-QM experts at the helm, you and your clients can feel confident that your investment deals will close on time, every time.
Closing DSCR with Stronghill
It’s no secret why brokers continue to choose our DSCR program for their investor clients. We’ve made major improvements to help you qualify your borrowers with better terms and rates on multifamily deals.
For one, we’ve upgraded our LLPA pricing on both No Prepayment Penalty and 1- and 2-year Fixed PPP options. Whether your clients are looking for long-term or shorter-term financing options, they have more choices with our team.
Stronghill has also relaxed certain loan restrictions and requirements that give your investors even more flexibility. We’ve eliminated the 5% LTV reduction for state declining market restrictions as well as the LTV reduction for borrowers who have experienced a credit event, such as foreclosure or short sale, within the last 24-36 months. Additionally, we’ve reduced the DSCR ratio from 1.15x to 1.0x on loan amounts of $1.5 million or more.
That’s not all – our team at Stronghill has raised the available loan amount threshold. From $1.0M to $1.5M for nine months and from $1.5M to $2.0M for 12 months. Plus, we’ve reduced Asset Verification from 60 to 30 days.
By reducing these reductions and requirements, your borrowers can now qualify for higher loan amounts and enjoy a more streamlined transaction process on multifamily deals.
The Stronghill Advantage
Closing DSCR loans can be simple if you have the right partner by your side. Not only is Stronghill actively growing loan production, but we are also improving our guidelines to meet the needs of your clients. With reduced documentation requirements, better pricing, and stronger service, we’ve quickly become a go-to partner for brokers across the country.
And it’s easy to see why – unlike most lenders, who don’t allow multiple deliveries under one relationship, we have the ability to facilitate a wide range of loans (from small-balance commercial to DSCR to all Non-QM) all in one place. With our Non-QM experts, you can feel confident your clients are in good hands.
As a national leader in the mortgage space, Stronghill is here to elevate your growth and help you close more deals in today’s market. Let’s get started today!
