Whether you are a first-time homebuyer or a seasoned veteran, the negotiation part of the transaction can be a little daunting and stressful. However, it is necessary to ensure you are getting the
Should you Flip a home With Cash or Financing in 2021?
Dated: January 7 2021
Home flips purchased with financing or cash remain about the same.
Nationally, the portion of flipped homes purchased with financing barely changed, rising from 42.4% in the second quarter of 2020 to 42.6% in the third quarter of 2020. But the rate was still well down from 49% in the third quarter of 2019. Meanwhile, 57.4% of homes flipped in the third quarter of 2020 were bought with all cash. That was virtually the same as the 57.6% figure in the prior quarter, but still up from 51% a year earlier.
Among metropolitan statistical areas with a population of 1 million or more and sufficient data to analyze, those with the highest percentage of flips purchased with financing in the third quarter of 2020 were Seattle, WA (61.2%); San Diego, CA (58.7%); San Jose, CA (58.2%); Louisville, KY (53.9%); and San Francisco, CA (53.8%).
FHA buyers purchase smaller portion of flipped homes
Of the 57,155 U.S. homes flipped in the third quarter of 2020, 14.7% were sold to buyers using loans backed by the Federal Housing Administration (FHA), down from 15.3% in the prior quarter, but up from 13.6 percent in the same period a year ago.
Among the 159 metro areas with a population of at least 200,000 and at least 50 home flips in the third quarter of 2020, those with the highest percentage of home flips sold to FHA buyers — typically first-time homebuyers — were El Paso, TX (37.2%); Roanoke, VA (36.4%); Beaumont, TX (36%); Waco, TX (36%) and McAllen, TX (35.4%). Info provided by ATTOM Data Solutions
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