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Fix & Flip Loans Make Sense Even as Housing Market Cools

February 15, 2023
Investor Fix & Flip loans were created for real estate investors who want to leverage the purchase and renovation of a property.

The pandemic-era housing boom is officially over: after two years of soaring sales volumes and record-breaking appreciation, homebuyers are catching their breath.

Appreciation has settled into the single-digit range, and the volume of sales fell in each of the final 11 months of 2022, according to the National Association of Realtors. That said, while the housing market has slowed, no crisis looms. In fact, entrepreneurs still see opportunity in short-term rehabs. Data company ATTOM reports that more than 90,000 homes were flipped by investors in the third quarter of 2022. While volumes were down from earlier in 2022, the fall still was one of the most active quarters on record for fix-and-flip loans.

For savvy investors, the slowdown in the market spells opportunity. In the go-go period, anyone could score on a fix-and-flip deal. A slower market is one for more experienced investors – and they’re still out there rehabbing and repositioning homes.

Home-price appreciation had slowed to the 2% range as of December, according to the National Association of Realtors. Numbers like that reward skilled, sophisticated investors. On the bright side, the housing shortage continues to hover over the entire real estate market. That’s why home prices have held strong even as mortgage rates doubled in 2022.

LendSure’s Fix & Flip Home Financing Program is ideal for the investors who are hanging in there during a leaner period. Investor Fix & Flip loans were created for real estate investors who want to leverage the purchase and renovation of a property. It’s a short-term loan, so our investor Fix & Flip solutions are created for entrepreneurs who intend to exit with the sale of the property, or to refinance into a long-term rental DSCR loan.

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. In the interest of transparency, we offer this caveat: the program does not necessarily 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 do fluctuate with the experience of the investor. A veteran flipper – one who has built a successful record of multiple fix-and-flip deals  – tends to qualify for higher loan-to-value ratios and lower loan rates.

Fix and Flip Infographic


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, the tools, support and the 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