Downpayments has secured funding allowing it to offer downpayment loans for investment properties secured by a second mortgage.

The amount of fix-and-flip properties sold in the third quarter of last year was down slightly but investors are hopeful that the market will pick up steam in 2024.

Student loan debt and rising interest rates are causing challenges for mortgages underwritten using debt service coverage ratios.

Fannie imposes a draconian 3% cap on NOO loans for some lenders to ensure it meets the 7% cap required under the PSPA. Freddie, already under the cap, puts its threshold at 6%.