Home Flippers Turning To Bank Loans More Often

Only 67.9 percent of house flipping projects were purchased with cash in 2016, an eight-year low
Dec. 29, 2016

More investors are getting bank loans to fund house flipping projects. According to a December report by ATTOM Data Solutions, 45,718 homes were flipped in the third quarter of 2016. Of those, 67.9% were purchased with cash, an eight-year low. ATTOM considers a home flipped if it sells for the second time in 12 months. Most flippers are individuals, and these transactions typically don’t fit the needs of local banks. As a result, investors frequently need specialty financing. The climate for house flipping is expected to be strong in 2017.

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