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Business Partner Update
Brad Flores
Brad Flores
Wednesday, October 14, 2026
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Renovation Loans — Mortgage Update for Realtors
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Rate Snapshot · October 16, 2026 |
▼ -0.11% |
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Conventional 30-Year
7.28%
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These are national mortgage index rates as of October 16, 2026. The 30-year fixed is at 7.28% — down 0.11% from last week, FHA at 7.13%, and VA at 6.93%. For exact rates tailored to your buyers, reach out to your loan officer directly.
Source: Optimal Blue daily mortgage indices via FRED
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From Your Lending Partner
Renovation Loans Open Inventory Your Buyers Have Been Ignoring
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The best-kept secret in a low-inventory market is the renovation loan. While your buyers are competing on turnkey properties, there's a whole layer of homes — dated, cosmetically challenged, priced below market — that most buyers skip because they assume they need cash to fix them up. They don't. FHA 203(k) and Fannie Mae HomeStyle loans let buyers finance the purchase and the renovation in a single loan. One closing, one payment. Buyers can borrow up to the after-improved value of the home — which means the renovation essentially pays for itself through equity. I've used this to help buyers turn a $320K fixer into a $410K home at close. The process is more involved than a standard purchase — there's a required contractor bid and a HUD consultant on FHA deals — but I manage that entire process. If you have buyers frustrated by competition on move-in-ready homes, let's open up the conversation about what a renovation loan could unlock for them.
Let's map out what a renovation loan could look like for one of your buyers this week.
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Mortgage News Daily
Home prices picked up a little more speed in July, as both FHFA and the S&P Cotality Case-Shiller Home Price Indices showed stronger annual appreciation than in their previous readings. The gains remain relatively modest by historical standards, and while nominal prices are still moving higher nationally, the picture looks considerably less impressive after accounting for inflation. The FHFA H
Read full article →
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HousingWire
JPMorgan and Wells Fargo also reported lower mortgage volumes amid higher rates
Read full article →
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Did You Know?
DSCR Investment Loans
Qualify investors on rent, not personal income.
DSCR loans let real estate investors qualify for financing based on the property's rental income — not their personal tax returns or DTI. Ideal for portfolio investors who've maxed out conventional loan counts.
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✓No personal income documentation required
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✓Qualify on rent-to-mortgage ratio (DSCR ≥ 1.0)
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✓Available for SFR, 2–4 unit, and short-term rentals
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✓Close in as little as 2–3 weeks
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Share With Your Buyers
Getting Pre-Approved
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Get pre-approved before you start touring homes — sellers won't take you seriously without it.
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2.
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Pre-approval and pre-qualification are different. Ask your lender which one you're getting.
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3.
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Your pre-approval is based on a point-in-time credit pull — don't open new credit accounts after applying.
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4.
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A pre-approval letter gives you a ceiling, not a target. Buy what fits your budget, not the maximum you qualify for.
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If your pre-approval expires before you find a home, your lender can refresh it quickly — just ask.
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Tip of the Week
Keep major renovations in line with your neighborhood. Over-improving for the area limits your return at resale.
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1401 W. Rancho Vista Blvd Palmdale, CA 93551 · 6613059689 · bradflores.com
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