Home prices are cooling nationally and in Northern California – but the slowdown is creating new opportunities.
Even after home prices have declined, parts of Northern California remain the nation’s most expensive housing market. If you partner with LendSure, you can tap into this market thanks to our higher loan amounts (up to $3 million) and competitive rates.
The recent housing recession has relieved some of the affordability pressure that’s challenging homebuyers. Case in point: The median single-family home price in the San Francisco Bay Area fell 19.2% from February 2022 to February 2023, according to the California Association of Realtors. Still, the region’s typical sale price remains above $1 million. Sales volumes also have declined, dropping 34% from February 2022 to February 2023.
With transactions expected to be subdued even as the spring selling season kicks off, each and every borrower is important to you as a broker. So, you need a lender who will use a commonsense approach to get their borrower’s loan funded and help the client close on their dream home or investment property on time. That’s where LendSure comes in.
Northern California remains an economic powerhouse; the Silicon Valley region is the epicenter of the global technology industry, and incomes are the highest in the nation.
For now, though, the housing market in Silicon Valley and San Francisco is reflecting the one-two punch of higher mortgage rates and the pullback in tech employment and stock valuations.
While home prices have softened in Northern California, that spells an opportunity for investors in the region. The supply of homes will remain constrained for the foreseeable future, and affordability challenges will keep some aspiring homebuyers in rental properties. Now is the time to invest – and LendSure is here to help brokers with their loan scenarios.
To capitalize on the opportunities presented by Northern California’s real estate market, LendSure offers some hot loan products that will help you build your business:
- Jumbo Prime and Jumbo Non-QM loans. Northern California’s home prices are so high that a good portion of mortgages fall into the jumbo range. LendSure’s Jumbo Prime program and Jumbo Non-QM program let you meet that demand, while simultaneously offering exceptional service levels and expedited funding times. LendSure’s programs offer loan amounts as high as $3 million and LTVs up to 90%.
- DSCR Loans for Investment Properties. LendSure’s debt-service coverage ratio (DSCR) program is designed to be attractive to property investors in Northern California. One way LendSure offers compelling value to your borrowers is that we look at market rents to qualify the property (instead of considering only currently rented units to support the loan amount), making a smoother path to loan approval. In other words, not all units need to be rented. What’s more, LendSure underwrites the investment property based not just on current, but also on future rent. For an explanation of this unique and useful loan program, see our DSCR Guidelines. 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.
Another reason why brokers continue to partner with us on DSCR loans is our 10/40 Fixed Interest-Only Program. It’s simple — we allow borrowers to qualify for 10 years of interest-only payments on a 40-year term. This makes it easier for borrowers who are looking to maximize cash flow on rental properties by keeping mortgage payments low.
- Other Financing for Investment Properties. Northern California is a prime destination for buyers of investment properties and second homes. LendSure offers a full array of loans for second homes and other investment properties, including full doc and bank statement loans. Mortgages are available for up to $1.5 million, and up to 80% LTV and 50% DTI. See our Investment Property Loans Guidelines.
When you partner with us, you can also take advantage of our unique rent calculation that lowers the interest rate for investors and helps you qualify for more loans. While Fannie Mae typically adds the borrower’s monthly net rental loss to their total monthly debt, we simply subtract the monthly net rental loss from the borrower’s total income. This allows us to calculate a lower DTI that results in a lower interest rate. It’s a win-win for you and your borrowers!
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 commonsense 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.