Homeowners traditionally take on long-term mortgages, but many property investors aren’t in it for the long haul. LendSure’s Fix & Flip Home Financing Program is designed for real estate investors who are looking to leverage the purchase and construction of a property.
It’s a short-term loan, so our Fix & Flip solutions are created for investors who intend to exit with the sale of the property, or to refinance into a long-term rental DSCR loan.
With U.S. home values on a record run, there’s no shortage of interest in Fix & Flip project opportunities. According to Attom Data Solutions’ first-quarter 2022 U.S. Home Flipping Report, 114,706 single-family houses and condominiums nationwide were flipped in the first quarter. Those transactions represented nearly 10% of all home sales in the first quarter of 2022, the highest level since at least 2000. The latest level was up from 6.9% during the fourth quarter of 2021, and from 4.9% in the first quarter of 2021.
With home flipping on the rise, 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. Just to be clear, 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 $200,000 for a property and expects to spend $100,000 on renovations. LendSure would loan up to 85% of the acquisition costs, or $170,000, and up to 85% of the renovation costs, or up to $85,000. This quick video runs through the numbers.
We aim to make a decision on the Fix & Flip term sheet 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 very experienced investor – one with a long track record of fix and flip – tends to qualify for higher loan-to-value ratios and lower loan rates.
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? Conventional 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.