Fix and Flip & Residential Loans Statistics (2022)

Residential and fix and flip loans statistics

IN THIS GUIDE

Nearly 6,000,000 homes are sold every year in the United States. Out of all homes currently owned in the US, 60% of them carry mortgage debt. The average mortgage debt held by US homeowners is $202,284, with an average monthly payment of $1030. Homeowners in the US are paying an average interest rate of 3.94% for a 30-year fixed-rate mortgage and 3.19% on a 15-year fixed-rate mortgage.[1]

Fix and Flip Loans Statistics 

Not all funding for residential single-family real estate investing is considered equal. While obtaining a mortgage on a turnkey property is fairly easy, lending institutions tend to shy away from fix and flip loans. This is a shame because this is where a lot of the big returns on investments come from.

Average Profit On A Fix And Flip

Since 2011, the average profit on a fix and flip investment has continued to climb steadily. By the second quarter of 2021, the average profit on a fix and flip property was $67,000 USD.

Average profit on fix and flip projects 

Unfortunately, where you live will determine the actual ROI you’re likely to experience. Let’s take a look at some of the best and worst areas for fix and flip investing.[5]

Fix And Flip Loan Returns By State

If you live and do business in Pennsylvania, you’re in luck. In 2020, Pennsylvania fix and flip investors saw the highest ROI in the country. Let’s take a quick look at the top 10 states in the US for fix and flip investments for 2020.

Fix and flip loans ROI by USA States

Conversely, if you’re living in Idaho, you may want to consider that investors in this state had the worst ROI in the country for fix and flip investments. Here’s how the bottom ten states in the country fared.

Fix and flip loans worst ROI by USA States

The remaining 30 states, as well as Washington DCaveraged an ROI on the fix and flip investments of 47.97%.[6]

Residential Loans Statistics 

Approval Rate For Mortgages

Banks and other financial institutions love lending money on residential properties. They approve nearly 70% of all mortgages applied for, which makes residential real estate investing a great first step for new investors.[2]

Mortgage approvals rate by banks and financial institutes

FHA Loan Borrowers Statistics

A Federal Housing Administration (FHA) loan is issued by a traditional lender and guaranteed by the government to be repaid. This guarantee makes it easier for low-income earners to purchase their first home. FHA loans;

Based on these looser requirements, 46% of all home buyers take out an FHA Mortgage for their first home.[3]

Multifamily Loans Lending Volume In The US

Multifamily loans in the US are also growing year after year. In 2020 alone, institutions lent out 359.7 billion U.S. dollars to multifamily property investors.[4] 

Most Attractive Property Sectors For Investment In The US

Both commercial and residential real estate investing is very profitable. But, if you ask the pros, investing in the industrial property sector is the way to go. In 2021, 36% of all professional real estate investors surveyed in the US thought that the industrial real estate market offered the best investment opportunities.[7]  

Popular property sector in USA in 2021

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