Are credit changes about to make flipping to a little easier on the exit side?
Or at least if you target first time buyers in your market- is anyone else is paying attention to these major credit reporting changes ?
Medical debt isn’t hitting like it used to, rent and utility history are starting to count more, and there’s a little more flexibility creeping into approvals. Also Fannie and Freddie are starting to allow VantageScore alongside traditional FICO, which could open the door for more borrowers who didn’t quite fit the old model.
It's still early, but it’s another reason I think we’ll see a gradual expansion in the buyer pool; a shift in who can actually qualify. So people who were just on the edge before—especially first-time buyers—can now start to get through underwriting. From a flipping standpoint, that’s interesting because that’s exactly the buyer pool most of us rely on for exits in that $150K–$350k range ( at least in the St Louis market)
This is definitely good news, but not a win fall. These are soon to be newly approved and still very payment-sensitive. They’re comparing everything, and they’re quick to walk if something feels off or overpriced.
So if anything, it feels like it could result in:
- Better demand for the right deals
- Less forgiveness for pricing mistakes
- More importance on function over just finishes
I’m starting to think this could create a bit of a “sweet spot” for flips that are: Clean, move-in ready, and priced strategically (not aspirationally)
Curious what others think.
- Alicia Sierra
