🛠️ Daily Mortgage Rates LIVE - 11/14/2025- Fix & Flip Loans

Today on Daily Mortgage Rates LIVE!, we’re breaking down Fix & Flip Loans — a fast, flexible way for investors to buy, renovate, and sell properties. These loans offer quick approvals, terms from 6–24 months, amounts up to $5M, and no personal income documentation. We’ll explain how ARV (After Repair Value) helps lenders evaluate your deal and how to plan your exit strategy, whether flipping for profit or refinancing into a DSCR loan to keep it as a rental. 

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The Mortgage Calculator is a licensed Mortgage Lender (NMLS #2377459) that specializes in using technology to enable borrowers to access Conventional, FHA, VA, and USDA Programs, as well as thousands of Non-QM mortgage loan program variations using alternative income documentation!

Using The Mortgage Calculator proprietary technology, borrowers can instantly price and quote thousands of mortgage loan programs in just a few clicks. The Mortgage Calculator technology also enables borrowers to instantly complete a full loan application and upload documents to our AI powered software to get qualified in just minutes!

Our team of licensed Mortgage Loan Originators can assist our customers with Conventional, FHA, VA and USDA mortgages as well as access thousands of mortgage programs using Alternative Income Documentation such as Bank Statement Mortgages...

Transcript

Welcome, everyone. My name is Nick Hiersche. I'm the president of the mortgage calculator. We are a lender, that offers all different types of loans, conventional, FHA, VA, non QM, and some of our unique commercial options such as our fix and flip loans for our investors out there, which is our topic for today.

So if you again, if you'd like to get a quote or a full breakdown on any of the things we go over today, please drop a comment there. We'd be happy to get back to you or go to our website and one of our loan officers would be happy to break that down for you. So let me go ahead and get into today's live rates. So the first thing we wanna look at here, one of the best indicators of, where rates are, is going to be our ten year treasury yield. This typically tracks, right along with mortgage rates.

So a lot of, back and forth with the news. You guys have all seen a lot of news with the government here lately. So we see a little bit of volatility, but I always wanna put things into perspective here. And if we pull it out to one year, we're still at nearly one year lows, which is great news for everybody out there. So while the news every day is a little bit of back and forth and the markets do react back and forth, we're still looking pretty good for everyone out there.

So now, let's pull up our actual live rates for today. So with our basic, live rate page here, we always use the same scenario to compare across all the different options. So we standard single family home, one unit, 500,000 purchase price, 300,000 loan amount, corresponds to 60% loan to value, seven sixty credit score, 40% debt to income ratio. Obviously, we can go a lot higher on a lot of these different programs, but because we're gonna compare all the different options, we use the same scenario across the board. So first up is our conventional, fixed for a primary home.

So this is our Fannie Mae, Freddie Mac, which you typically think of when you think of a mortgage. So rates coming in today, 5.875, not much change from yesterday. Finally, if you are 6.135 there. And we usually compare that to an FHA option. FHA lost a little bit lower credit scores typically and a little bit higher debt to income ratio.

And that comes in today at 5.25, but the final PR is 6.162, a little higher on the final PR because FHA does include upfront and yearly mortgage insurance for that program. And for eligible vets, active service members, and surviving spouses, we do have our VA programs. So those are amazing for our eligible borrowers. Rates coming in today, 5.375, but notice the final APR, 5.639 because there are much lower fees there for our VA eligible borrowers in this example. And the final government option here, USDA, only for properties in USDA eligible areas, typically the rural areas of the country.

And for our borrowers that are eligible for that program, these are amazing options. So we always wanna compare that typically to an FHA option. You see rates for USDA coming at 5.125. Probably, there are 5.791 with all the fees included for USDA. A little bit lower there than FHA in the same example.

So definitely compare that if you are shopping in those areas. And now we get into some of our more unique options here under our non QM programs. So these are gonna be our opt doc options using full doc, of course, but also bank statements, ten ninety nines, p and l statements, all kinds of different self employment options for our borrowers that need a little bit little bit of flexibility. So for our primary home, we could get our non QM options as low as 5.875 rate. Finally, we have our 6.145.

So So just a touch higher than our conventional options, which is amazing. We can use bank statements for nearly the same price. And for our investment properties, we can use our non QM options as well. Bank statements, ten ninety nines, p and l's, or full stock, of course. Rates coming in today, 6%.

Finally, PR, 6.321. And we'll compare that to our conventional option for a investment property coming in today at 6% rate. Finally, PR is 6.311, so just a touch cheaper for our conventional option than our non QM. So pretty amazing for our borrowers that to use those non QM options. And one of our favorite programs, our DSCR stands for Debt Service Coverage Ratio.

No income or employment needed. We simply use the estimated rents from the property to determine the Debt Service Coverage Ratio. And as long as the ratio is over one, this option works here with a three year prepayment penalty here, rates as low as 6%, final APR 6.284. So actually cheaper than conventional, which is absolutely amazing when we have that prepayment penalty in there. And we can add a five year prepayment penalty as well to sweeten the deal, and rates today come in at 5.875 if we had the five year prepay.

And finally, PR comes in at 6.157. So that beats three year conventional and our non QM all docs. So absolutely amazing that DSCR is coming in at the top of the list there. And we do have DSCR with no prepayment penalty that comes in at 6% rate. Final PR is 6.321, so a little more expensive than conventional for no prepaid, but still an amazing option for our investors out there.

And we do have our second mortgages. These are non QM fixed rate second mortgages. So, often a little bit, better option for our borrowers than a HELOC because it's not variable. It's fixed and rates are typically a little lower. So our option to use our non QM second mortgage, even use bank statements, for income if we need to, rates come in today at 7.75 for a primary home to get that cash out without touching the first mortgage.

Final APR, 8.096. And use the same program, our fixed rate second mortgages for an investment property. Of course, we can go full doc. We can do our all doc options, bank statements. And for investment properties, we even have a DSCR, second mortgage option, which is pretty amazing to get cash out of that investment property without touching the first mortgage.

And for an investment property, 8.75 rate. Final APR, 9.161. And now let's get into our topic for today. So with our example, we're going to again go over a fix and flip loan. So first, I always wanna pull up an actual property.

So I was just looking in, the general area here. Good option here in the area where I typically look at. Here in downtown, notice some amazing giant homes right here going for a million plus. And we this home that obviously needs a little bit. So like most fix and flippers, they're gonna look for something in a great area that just needs a little bit of updating.

We have so this is a good option. So this is our example here. This is a purchase going to be for a thousand, and, we're going to pencil in a budget of 250,000 for rehab in order to hopefully, rehab this into something that looks more like the home on the left and the for about 1 and a half million dollars in this area. Obviously, we're gonna have to add more bedrooms, maybe one or two bedrooms, and some square footage as well and update everything. But thousand dollars can get us a little bit of space and a little bit of extra, bedrooms.

So here is the actual quote that I set up using our example. Now, this is going to be our most, general fix and flip example. We have a ton of different options. This one works for first time flippers as well as experienced. Obviously, if you have more experience, the interest rate can be a little lower and we can increase the leverage a little bit.

But since this is a show that goes out there publicly, we wanna make sure we have an option that will work for everybody that watches today. So this is an actual fix and flip example for that exact property we just pulled up. Again, we're gonna go for a $750,000 purchase price, and we're gonna target for a $250,000 renovation budget. Typically, anything over $250,000 is going to be a measured renovation, and will be treated more like a ground up. So this is a good option to kinda max out everything and hopefully make a great return.

So you see here, we were going to use a 9.5 interest rate. This is gonna be a one year fix and flip loan, so we could have to flip the property and either sell it or refinance it within one year. And the rate's gonna be 9.5%. The purchase price is gonna be $750,000. We have to put 10% down on the purchase, so 90% loan to value on the purchase, and we can get up to 100% of the rehab funds.

So we can see here that's going to be the purchase loan. Going to see the fix and flip. So our after repair value, our targeted sale price is going to be one that would be amazing. Our costs for this deal when we have everything up including interest and everything for the whole year going to be 1,100,000.0. And our estimated gross profit, if we can attain that value, it's going to be 382,000.

That's an amazing deal. And this in this example, we were able to get a loan to cost of a little over 90%, ARV of 61.6 see all the different analysis points here, return on investment of 32%. Pretty amazing numbers if this all works out. Not every deal works out, so make sure it's realistic. And, here you can see that we added the interest for, the year in there, we added the discount minus the cost of the loan, and that included the total cost and allowed us to get our final estimated gross profit we just broke down.

So that is how you break down one of these deals. A pretty complicated deal to put together, we're gonna have to do either a sale or a refinance here at the end of the twelve month term. But these are very popular requests. So I wanna make sure our team understands how to do them. And, of course, our borrowers out there, they're interested in starting their first fix and flip.

This would be a great example. A little bit of a big you know, over a million dollars, probably not gonna be your first example, right in the area. So that'll wrap it up for today. If you have any questions or wanna get your own quote on your exact scenario, please get with one of our team members. Again, we have over 400 licensed loan officers in 35 states, and we can even do fix and flip, loans and other commercial loans, in other states as well.

So thanks everybody for joining us, and we'll be back next week with another edition of Daily Rates Live. Thanks.