As the U.S. housing market shows signs of cooling, Texas real estate market is in an unusual position.
The state’s homes remain affordable compared to the rest of the nation – even after Texas’ median single-family home price jumped 19% from the second quarter of 2021 to the second quarter of 2022.
The state’s combination of warm weather, a strong economy and attractive taxes mean Texas continues to attract buyers from around the country and around the world. What’s more, Texas is a comparatively affordable state for homebuyers. The statewide median price in the second quarter was $357,388, according to the Texas Realtors. Higher-priced markets include Austin, where the median price was $546,000, and Dallas-Fort Worth, with a typical sale price of $425,000.
To meet the needs of clients in Texas’s real estate market, LendSure offers some hot loan products that will help you build your business:
- Non-warrantable condo loans. LendSure prides itself on being a flexible lender, one that qualifies borrowers based on common sense rather than rigid rules. The latest condo guidelines from Fannie Mae and Freddie Mac, introduced in early 2022 to address structural integrity of condo buildings, caused upheaval in the condo market. If you have a borrower whose conforming deal has been rejected or stalled because of the agencies’ onerous rules, we can help. LendSure’s common-sense rules allow for approvals of condo units that the agencies reject, including condotels.
- The high DTI program. Texas’s median home price was $420,000 in June 2022. At that price level, borrowers are looking for flexibility in terms of amortization schedules and qualifying parameters. Enter LendSure’s 55% DTI 40-year Fixed Interest Only product. This innovative loan allows borrowers to show a debt-to-income ratio of up to 55% based on the fully amortized 30-year payment. What’s more, the 40-year amortization schedule lowers monthly payments, and the interest-only feature reduces payments even farther.
- Foreign nationals. Foreign buyers are coming back, and Texas is a popular destination for foreign buyers. LendSure has one of the strongest products in this space. Foreign national lending presents a huge opportunity for you to grow your business. In the latest year reported by NAR, this lucrative segment saw more than $59 billion of purchase volume and nearly 100,000 buyers. Yet many of those buyers don’t qualify for U.S. mortgages. Foreign national lending doesn’t have to be complicated. When you work with a trusted lender to guide you through the process, you can capitalize on this underserved market segment.
- DSCR loans for investment properties. LendSure’s debt-service coverage ratio (DSCR) program is designed to be attractive to property investors. LendSure looks at market rents to qualify the property (instead of considering only currently rented units to support the loan amount), creating an easier path to approval. In other words, not all units need to be rented. LendSure underwrites the investment property based on both current and future rent. For an explanation of our DSCR loans, see this short video. Meanwhile, LendSure has expanded its DSCR program beyond the typical one to four units – we make DSCR loans on properties with up to eight units.