house-flipping-states-cover.jpg
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.

Want more? Check out 5 best and worst cities for house flipping ROI
NMN092017-2-oregon.jpg
View of Portland, Oregon from Pittock Mansion.

No. 12: Oregon

Share of initial purchases financed: 39.4%
Number of home flips: 851
Median initial purchase price: $200,000
Average days to flip: 190
NMN092017-3-virginia.jpg
Old brick houses in the Old Town of Alexandria, Virginia.

No. 11: Virginia

Share of initial purchases financed: 39.5%
Number of home flips: 1,134
Median initial purchase price: $156,500
Average days to flip: 181
NMN092017-4-nebraska.jpg
A panoramic view across the river at downtown Omah Nebraska

No. 10: Nebraska

Share of initial purchases financed: 42%
Number of home flips: 262
Median initial purchase price: $106,000
Average days to flip: 195
NMN092017-5-washington.jpg

No. 9: Washington

Share of initial purchases financed: 43.3%
Number of home flips: 1,672
Median initial purchase price: $203,500
Average days to flip: 188
NMN092017-6-arkansas.jpg
Aerial view downtown Little Rock at the south bank of Arkansas River. Its the capital and most populous city of Arkansas state, US. Main St Bridge and Junction Bridge Pedestrian Walkway across river.

No. 8: Arkansas

Share of initial purchases financed: 43.7%
Number of home flips: 254
Median initial purchase price: $106,450
Average days to flip: 183
NMN092017-7-arizona.jpg

No. 7: Arizona

Share of initial purchases financed: 44%
Number of home flips: 2,746
Median initial purchase price: $160,000
Average days to flip: 166
NMN092017-8-duluth.jpg
Duluth is a Seaport City in the U.S. State of Minnesota and is the County Seat of Saint Louis County. Duluth Cityscape Photo in Summer.

No. 6: Minnesota

Share of initial purchases financed: 46.3%
Number of home flips: 561
Median initial purchase price: $150,000
Average days to flip: 197
NMN092017-9-wisconsin.jpg
Milwaukee - city panorama seen from the north side

No. 5: Wisconsin

Share of initial purchases financed: 47.2%
Number of home flips: 481
Median initial purchase price: $105,000
Average days to flip: 193
NMN092017-10-massachusetts.jpg

No. 4: Massachusetts

Share of initial purchases financed: 49.5%
Number of home flips: 880
Median initial purchase price: $220,000
Average days to flip: 211
NMN092017-11-rhodeisland.jpg

No. 3: Rhode Island

Share of initial purchases financed: 50.6%
Number of home flips: 180
Median initial purchase price: $138,750
Average days to flip: 200
NMN092017-12-newhampshire.jpg

No. 2: New Hampshire

Share of initial purchases financed: 57.7%
Number of home flips: 150
Median initial purchase price: $188,267
Average days to flip: 203
NMN092017-13-denver.jpg
Sunny Denver Skyline. Spring in Colorado. Denver Skyline and Snowy Rocky Mountains.

No. 1: Colorado

Share of initial purchases financed: 57.7%
Number of home flips: 1,666
Median initial purchase price: $230,000
Average days to flip: 188

Want more? Check out 5 best and worst cities for house flipping ROI
MORE FROM NATIONAL MORTGAGE NEWS