While housing markets across the nation are at a standstill thanks to high prices and even higher interest rates, the Southern California housing market is taking a slight, but positive, turn in 2023.
Southern California Housing Market Updates: According to CoreLogic, the median home sales price was $690,000 in February, down by 0.3% from one year earlier. While prices are steadily decreasing, mortgage rates are still high (averaging at about 6%), which is significantly affecting sale volume in the area. Since February 2022, sales fell by a whopping 37.6%.
Despite prices going down, they’re still relatively high in this region compared to the rest of the country. Fortunately, LendSure’s Jumbo and Non-QM solutions offer loan amounts as high as $3 million for primary residences and $1.5 million for secondary homes and investment properties. And with our flexible underwriting, we can go higher in certain cases.
This makes it easier for you to expand your network and reach more types of borrowers in today’s market. Still, a reduction in home sales may sound bleak for loan officers who want to build their pipeline and close more deals this year, but there is a silver lining – especially for your investor clients.
With buyers waiting for interest rates to drop, there’s less competition and more opportunity for borrowers to clinch a deal and close on their next investment property. The trick is knowing when to strike.
There is, however, currently high demand for rental properties, driven in part by a growing population and a lack of affordable housing. For those reasons, now is a perfect time for your investor clients to close in on an investment property if they’ve been looking to generate additional rental income.
How can you as a solution provider help them? Easy – partner with the right lender to expand your portfolio offerings and provide fast and flexible solutions for your clients.
Here are a few of our most popular Non-QM loan options for today’s investors:
1. Rental Property Cash Flow Loans
This alternative mortgage program allows investors to qualify for financing for 1- to 4- and 5- to 8-unit properties without providing tax returns or other income documentation. Instead, we analyze the property’s Debt-Service-Coverage Ratio (DSCR) or monthly cash flow to measure whether or not the property has the ability to generate enough income to cover loan payments. This video shows how we calculate the DSCR ratio.
If you’re working with investors who are self-employed, you know how difficult it can be for them to secure financing from traditional banks because of the strict income documentation requirements generally associated with traditional banks. This alternative loan solution allows them to submit 12 or 24 months of personal or business bank statements to qualify for a loan. Borrowers also have the option to combine W-2s with bank statements. We consider all income sources to fit their unique mortgage needs. The best part? It can take as little as 24 hours (yes, 24!) to qualify thanks to our pre-underwriting process.
Designed for real estate investors (from novice to expert) who are in the business of purchasing and renovating properties, this solution gives them the flexibility to take advantage of investment opportunities that may not be possible with their own cash on hand. This loan program is a great alternative to hard-money loans. And with LendSure’s commonsense underwriting, we strive to deliver decisions and term sheets to your clients in a matter of hours, not days.
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 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 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.
