Home prices are on the rise again – the median price of existing homes sold in the U.S. hit a new record of nearly $420,000 in May 2024 , according to the National Association of Realtors. Meanwhile, gross profits on home flips nationally rose to an average of $72,375 in the first quarter of 2024, up from $65,000 in the fourth quarter of 2023, according to ATTOM.
With the housing market gathering speed, investors are more interested than ever in figuring out how to buy distressed homes, fix them up, and then sell them.
LendSure’s Fix and Flip program is designed for these types of borrowers – whether they plan to sell after the renovation, or hang onto the property and collect rent. This program offers the same common-sense underwriting and service levels you expect with LendSure’s other loan programs. LendSure can write both loans – Fix and Flip and DSCR Cash Flow loans.
At LendSure we know today’s housing market is moving fast, and that time wasted waiting for financing approvals can lead to lost deals. That’s why we pride ourselves on making decisions and issuing term sheets in hours, not days.
Your clients will need to hit some basic benchmarks to qualify. Here’s a rundown of how we underwrite Fix and Flip loans:
- Creditworthiness. Our minimum credit score for Fix and Flip loans is 660.
- Investor experience. Unlike other lenders, we make Fix and Flip loans to borrowers with any level of experience as real estate investors. However, we are willing to offer higher loan-to-value ratios to borrowers with a proven track record of successful Fix and Flip deals. The bottom line is that we’re open for business to both novice investors and experienced home flippers.
- A business plan that makes sense. The road to a successful flip is packed with many potholes – cost overruns, supply shortages, and failed inspections are all part of the game. We want to see that the borrower has a reasonable plan for both the after-repair value of the home and how to achieve it. Encourage your client to provide us with the documentation that led them to think this particular Fix and Flip is promising. That could include an appraisal, a contractor’s estimate, and information about comparable properties in the target home’s neighborhood.
The LendSure Way
It’s simple. We make loans that make sense. We’re not in-the-box lenders. Of course, there are numbers 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 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.
