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Fix and Flip Loans Still Relevant Even as Home Values Take a Breather

October 19, 2022
LendSure delivers answers on Fix and Flip loans within hours, not days. Programs are available for: single family, multi-family & more.

The housing data is nearly unanimous on this point: after two years of dizzying appreciation, the U.S. housing market finally is slowing down. Appreciation has settled into the single-digit range, and the pace of sales has calmed considerably. While the housing market is cooling, it’s not crashing.

In fact, property investment remains a viable endeavor for many short-term holders. Data company ATTOM reports that 115,198 houses and condos were flipped by investors in the second quarter of 2022, up from 114,706 in the first quarter of the year.

Maybe the easy profits were made earlier in the real estate cycle, but opportunities remain. That’s where LendSure’s Fix & Flip Home Financing Program comes in—these loans were created for real estate investors who are looking to leverage the purchase and renovation of a property. It’s a short-term loan, so our Fix & Flip solutions are created for investors who intend to exit with the sale of the property or to refinance into a long-term rental DSCR loan.

While ATTOM reports that fix & flip deals declined as a percentage of all sales in the second quarter, these borrowers remain an important part of the housing market—and of your business. Indeed, ATTOM reports that the second quarter of this year was the second-busiest three-month period on record for fix & flip deals.

With home flipping still attractive to many investors, borrowers are looking for an out-of-the-box solution for their unique needs. LendSure’s Fix & Flip program offers up to 85% of the purchase price, and up to 100% of the construction cost on some loans. The total loan amount is up to 85% of the total cost. Just to be clear, the program does not offer 85% and 100% of the construction cost on every transaction.

Here’s a common scenario: say an investor pays $300,000 for a property and expects to spend $100,000 on renovations. LendSure would loan up to 85% of the acquisition costs, or $255,000, and up to 85% of the renovation costs, or up to $85,000. This quick video runs through the numbers.

We strive to deliver an answer on Fix & Flip applications within hours, not days. We work with clients with a credit score as low as 660, and our interest rates are competitive. We primarily service single-family and multifamily properties, but LendSure also considers mixed-use properties, on an exception basis.

While LendSure’s Fix & Flip loans are available to novice investors, the terms fluctuate with the experience of the investor. A very experienced investor – one with a long track record of fix & flip—tends to qualify for higher loan-to-value ratios and lower loan rates.

The LendSure Way

It’s simple. We make loans that make sense. We’re not in-the-box lenders. Of course, there are numbers and ratios, and data to consider, but we know that behind every file, there’s an individual with a unique circumstance seeking a loan. We work hard to offer our common-sense take on lending to borrowers seeking funding for the home of their dreams, another addition to their investment property portfolio, or refinancing of a currently owned property.

Are you ready to grow your business? Conforming loan approval guidelines can be restrictive, but we want to offer our mortgage broker partners the education, tools, support, and guidance they need in order to say “yes” to more of their clients. This ensures happy borrowers and opportunities for bottom-line growth. What are you waiting for? Let’s get started!

Are you ready to benefit from a commonsense approach to lending? Contact us today to learn more about non-QM loans and how partnering with LendSure Mortgage Corp. can help grow your bottom line.

Contact Us: (888) 707-7811