DSCR Loans: Your Go-To Mortgage Solution for 2024

As we wrap up 2023 and gear up for the new year, it’s time to evaluate your mortgage business and see what works and what doesn’t — particularly with how the market is shifting today.

Not too long ago, your business may have thrived with first-time homebuyers, but with prices and interest rates skyrocketing, that demographic is quickly dwindling. Unfortunately, that can have a major (and negative) impact on your bottom line if you’re solely relying on these types of clients. The key to succeeding is recognizing the industry trends and zeroing in on borrowers who are currently engaging with the real estate market. And more importantly, borrowers who have the most potential to engage with you and your business.

While homebuyers may be slower to commit to purchasing, more and more investors are actively searching for their next big investment every day. But how can you tap into this segment of the population? Easy — incorporate DSCR loans into your product offering.

Here’s how Stronghill Capital can help you grow this part of your mortgage business as we move into 2024:


Looking Back: Rising Interest Rate Market

This year was difficult for homebuyers across the country. Not only did interest rates reach an all- time high, home prices didn’t budge. In fact, prices went up by 42% over the last three years with mortgage payments increasing by 60%. These numbers presented a major challenge for many borrowers who wanted to purchase in 2023.

New buyers were afraid to tie themselves down to an expensive mortgage, while others didn’t want to risk purchasing another property and leaving their 2-3% rates from 2020. It’s no surprise that the real estate market was at a standstill this year. Despite these figures, there was a glimmer of hope for another segment of the population: investors.


Looking Forward: Investment Property Loans

With buyers playing it safe and resorting to renting, there was an increase in demand for apartments and short-term rentals. This allowed investors more room to expand their portfolios and meet this new demand.

According to Corelogic, real estate investors were responsible for 27% of single-family home purchases in the first quarter of 2023. And the U.S. Census Bureau estimates that 81,000 single-family rentals were started this year. This ultimately means the market became ripe with investment opportunities.

As we move towards 2024, this trend is expected to continue, giving you a huge opportunity to work with these types of borrowers in 2024.

The Stronghill Advantage: DSCR Loans

With investors making more of a splash in the market, now’s the time to ensure you have strong offerings that can help them grow their investment business. But first, you have to ensure you have a reliable partner on your side. At Stronghill Capital, you can take advantage of our Debt Service Coverage Ratio (DSCR) loans and offer a flexible financing solution for today’s investors.

Here’s how the solution works: Instead of focusing on the borrower’s income, this product instead analyzes the property’s cash flow to determine whether or not the investor can afford to pay back the mortgage. And the best part? No income or tax documentation is required. We work with a wide range of borrowers — from first-timers to experienced investors, our goal is to help your clients secure the financing that makes the most sense for them.

Here’s a closer look into our current guidelines:

  • Minimum DSCR: 0.75x
  • LTVs up to 80%
  • Purchase, Rate/Term, and Cash-out Refinance Options
  • No borrower income or employment information required
  • Fixed, ARM, and Interest Only term options
  • Ability to close as individual or entity*

*LLC, S-Corp, C-Corp, and Partnerships

Ready to expand your business in 2024? Choose Stronghill Capital for all your DSCR needs to ensure you and your clients are on the path to success in the new year.