Investment Purchases on the Rise for the First Time in a Year

It’s a great time to be a real estate investor. According to Redfin, investor home purchases in the U.S. rose by 2.7% year over year in the first quarter, marking the first period of growth since the pandemic began in 2020. The increase follows three consecutive quarters of declines, where investor purchases slumped by as much as 45.5%.

Like many other home buyers, investors tended to halt purchases at the beginning of the pandemic. But even as the market came back with a vengeance, investors still waited on the sidelines with an uncertain renter’s market. Until now.

A Rebounding Economy

A couple of the driving forces of the fueled, single-family and high-priced investor markets are a recovering economy and Americans’ desire for space and privacy away from crowded city apartment buildings. The Redfin analysis shows investor purchases of high-priced homes jumped 19.8% year over year in the first quarter where investor purchases of mid-priced homes rose 12.7%. Investor purchases of low-priced homes declined 9.2%.

The housing inventory shortage in the single-family mid-priced sector means more families are resorting to rentals. That’s good news for investors who are lucky enough to snag the homes that are available and turn them into rental properties.

Owning rental property in today’s market is especially appealing because it can offer a predictable income stream. The good news is, investors have an excellent loan program at their disposal that allows them to use predicted revenue from future rent to qualify for the loan, with no minimum landlord experience required. Luxury Mortgage’s Simple Access® Non-QM Investor Cash Flow loan more easily allows landlords to enter the real estate investment market.

Investor Cash Flow Loan Highlights

This unique rental property loan program allows borrowers to use their projected cash flow once the house is rented instead of income and employment documentation to qualify. Highlights include:

• Loan amounts up to $3.5MM.
• No debt-to-income (DTI) or employment verification required.
• Qualification is based on the debt-service coverage ratio (DSCR) of the subject property.
• All occupancy types (Primary residence, second home or investment property).
• Multiple financed properties allowed.

Interested in learning more about Luxury Mortgage’s Simple Access® Non-QM Investor Cash Flow loan? Use the buttons below to get in touch with us.

*Guidelines subject to change. Please contact Luxury Mortgage for the most up-to-date information. Additional conditions will apply.