The housing market is in a strange place. Home values have softened, but affordability remains a challenge for buyers.
For your investor clients, today’s housing market presents an opportunity. Monthly rents on residential properties remain robust, and investors can generate passive income by adding to their property portfolios, Another macro trend is housing affordability. While home prices have peaked and even retreated in some parts of the country, the jump in mortgage rates has squeezed affordability. Housing affordability hit a record low in the fourth quarter of 2022, according to the National Association of Home Builders/Wells Fargo Housing Opportunity Index. LendSure’s Fix & Flip Home Financing Program is ideal for investors who are adjusting to the new reality of the housing market.
What is a Fix & Flip loan?
Simply put, a Fix & Flip loan lets a borrower finance both the purchase of a property and the construction budget for renovations. 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 designed for entrepreneurs who intend to exit with the sale of the property or to refinance into a long-term rental loan. A Fix & Flip loan is a great alternative to hard-money loans.
How does a Fix & Flip loan work?
Investors are looking for out-of-the-box solutions 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. The loan-to-value and loan-to-cost are dependent on the level of experience, the project scope, and the after-repair value.
Here’s a common scenario: Say an investor pays $275,000 for a property and expects to spend $100,000 on renovations. LendSure would loan up to 85% of the acquisition costs, or $233,750, and up to 85% of the renovation costs, or up to $85,000. This video gives an overview.
How to qualify for a Fix & Flip loan?
Investors with any level of experience are eligible for LendSure’s Fix & Flip loans, although first-time investors will qualify for a lower loan-to-cost level. We work with clients with credit scores as low as 660, and our interest rates are competitive. We primarily finance single-family and multifamily properties, but LendSure also considers mixed-use properties, on an exception basis.
How long does it take to get Fix & Flip financing?
We strive to deliver an answer on Fix & Flip applications within hours, not days.
What is the Fix & Flip loan process?
The loan officer goes to LendSure.com and finds the Fix and Flip Financing tab. There, the loan officer chooses one of the two options:
- Purchase and construction
- Refinance and construction
The loan officer fills out and submits an application. The submission is sent to LendSure’s Fix and Flip team. LendSure prepares a term sheet based on the application and sends it back to the loan officer, usually within 24-48 hours.
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 unique circumstances seeking a loan. We work hard to offer our commonsense take on lending to borrowers seeking funding for the primary home, another addition to their investment property portfolio, or refinancing of a currently owned property.
Are you ready to grow your business? Conventional 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.