Lenders made an estimated $4.4 billion in loans to house flippers during the second quarter of 2017, up nearly 28% from a year ago and a high not seen since the third quarter of 2007, according to Attom Data Solutions.
The shift comes as distressed housing inventory has dried up, forcing investors to pay closer to market value and rely on price appreciation to generate a profit.
Nationally, only about one-third of flippers use financing for the initial home purchase. But on the local level, markets like Washington, D.C., and Colorado Springs, Colo., saw flippers use financing on more than 60% of transactions.
Here's a look at the 12 states with the highest share of investors using financing for flipping houses.
Taylor, Bean & Whitaker's former chairman and CEO, Lee Farkas, led a $2.9 billion mortgage fraud scheme during the housing crash but was released early from prison due to susceptibility of COVID-19 transmission.