The Power of Flex Supreme Loans in South Dakota’s Competitive Housing Market

Understanding the Flex Supreme Loan Advantage The Flex Supreme loan program from NQM Funding is a powerful solution for mortgage brokers seeking to serve top-tier borrowers. Tailored for clients with strong credit, full documentation, and straightforward financing needs, Flex Supreme stands out in the broader landscape of Non QM Loans. With streamlined underwriting, stricter qualification guidelines, and premium pricing for the right borrower, Flex Supreme can be the ultimate tool in your mortgage product suite.

Unlike other programs like Flex Select, which offer expanded flexibility for borrowers with unique income or credit situations, Flex Supreme is reserved for those who meet more conventional criteria. Qualified borrowers benefit from competitive rates, efficient closings, and fewer underwriting exceptions. This makes it a go-to option when speed and simplicity are critical. For mortgage professionals operating in competitive environments, a strong Flex Supreme borrower can often beat out higher offers due to cleaner files and lender confidence.

Qualifying Criteria That Empower South Dakota Borrowers Flex Supreme loans come with specific eligibility standards that ensure only the most creditworthy borrowers apply. Each applicant must meet rigorous trade line requirements: either three tradelines open and active for at least 12 months, or two active for 24 months. All tradelines must have on-time payment histories with no serious delinquencies in the last 24 months.

Borrowers must also demonstrate a clean housing history. First-time home buyers are expected to have a 0x30x24 history, meaning no late payments within the last 24 months. Others must meet a 0x30x12 standard. Credit scores are critically important—each borrower must have at least two valid credit scores, and the lowest middle score is used for qualification.

Income documentation is non-negotiable under Flex Supreme. Full documentation is required: two years of W-2s, tax returns, and employment verification. Projected income or asset-based qualifying alone is not acceptable under this program.

Flex Supreme also excludes borrowers with major credit events. A bankruptcy, foreclosure, or deed-in-lieu must be seasoned for at least four years—and seven years if the borrower is a first-time buyer. Borrowers living rent-free must supply a comprehensive explanation letter and 12 months of housing history prior to their rent-free period.

Non-occupant co-borrowers are only allowed on owner-occupied loans, and certain borrower types, such as ITIN holders and Foreign Nationals, are not eligible under Flex Supreme. For those clients, brokers can pivot to programs like Select ITIN or Foreign National.

LTV, DTI, and Cash-Out Refinance Parameters Loan-to-value (LTV) ratios and debt-to-income (DTI) thresholds are foundational to Flex Supreme eligibility. For most transactions, the maximum LTV is 90% on owner-occupied purchases with no secondary financing. DTIs are generally capped at 50%, although for first-time homebuyers, the maximum DTI is 43%.

Cash-out refinances require six months of seasoning from the date of the last transaction. In South Dakota’s competitive housing environment, this gives homeowners flexibility to tap into equity for property improvements or investment opportunities—but only if they meet all other requirements. All properties must be free of recent listings within six months and cannot be held in community land trusts or have complex vesting such as unequal tenants in common.

Brokers should also be aware that Flex Supreme does not allow delayed financing, flip transactions under 180 days, or escrow holdbacks. Leaseholds, non-arm’s length transactions, and down payments funded entirely by business assets are disallowed.

Using Full Documentation for Stronger Borrower Files Under Flex Supreme, full documentation is a strict requirement. W-2 wage earners must provide two years of tax returns, pay stubs, and employment verification. Self-employed borrowers need to present two years of business returns, K-1s, and year-to-date P&L statements supported by bank statements.

Asset utilization is not allowed as a supplement to income under Flex Supreme, although some alternative programs do allow this. Gift funds may be used for down payment and closing costs on 1-unit primary or second home transactions, but not for reserves. The minimum borrower contribution must be at least 5% on primary residences.

Business assets may be used only if the borrower owns 100% of the business or jointly with a spouse. All funds must be verified and sourced, with documentation going back 90 days for newly opened accounts. Escrow waivers are only allowed on non-HPML loans with LTV up to 80% and a housing history of 0x30x12.

Flex Supreme also does not permit interest-only loans, negative amortization features, or balloon mortgages. Borrowers must qualify at the note rate (fixed terms) or the greater of the fully indexed or note rate (for ARMs).

South Dakota’s Housing Market and Flex Supreme Opportunities South Dakota’s housing market is unique in its combination of rural and suburban demand, relatively affordable pricing, and increasing pressure from out-of-state buyers. In cities like Sioux Falls and Rapid City, competitive offers, limited inventory, and rising home values are the norm.

As of early 2025, median home prices in Sioux Falls hover around $330,000, while in Rapid City they approach $310,000. Flex Supreme loans can be instrumental for highly qualified buyers trying to secure homes in these markets without financing delays.

In communities like Brandon, Aberdeen, and Brookings, inventory remains tight, and sellers increasingly prefer buyers with verified funding and clean approvals. Brokers who understand the local dynamics can lean on Flex Supreme to position their buyers ahead of competitors relying on traditional agency financing.

Sellers in areas such as Pennington and Minnehaha counties are more likely to accept Flex Supreme borrowers due to the confidence that comes from clean documentation and no underwriting exceptions. This can be a game-changer in multiple-offer scenarios—especially in sought-after zip codes like 57106 (Sioux Falls), 57701 (Rapid City), and 57401 (Aberdeen).

Targeting Primary and Second Home Buyers in South Dakota Flex Supreme loans are available for both primary residences and second homes. This is particularly valuable for clients seeking second homes near the Black Hills or around popular vacation areas like Sylvan Lake or Custer State Park.

These properties, often priced between $250,000 and $500,000, attract higher-income borrowers who want fast, clean closings. Flex Supreme enables brokers to meet those expectations by pairing strong applicants with an underwriter-friendly product.

Second home borrowers must contribute a minimum of 10% from their own funds, and gift funds cannot be used for reserves. Additionally, the property cannot be subject to timeshare arrangements or rental pools, and must meet conventional occupancy standards.

This makes Flex Supreme ideal for high-income earners in Rapid City looking to buy summer cabins or lake homes in the Keystone, Hill City, or Lead areas. Many of these buyers have multiple financed properties, and Flex Supreme allows additional reserve requirements to be satisfied using cash-out proceeds.

The Broker’s Edge with Flex Supreme Loans Mortgage brokers in South Dakota gain a competitive advantage when they understand the nuances of Flex Supreme loans. By prequalifying the right clients and managing expectations, brokers can reduce back-and-forth with underwriters and close loans faster.

Flex Supreme borrowers are typically W-2 wage earners, small business owners with long histories of filed taxes, or retirees with verified pension and retirement income. Brokers can use NQM Funding’s Quick Quote tool to identify eligible files faster and avoid wasting time on applicants better suited for DSCR or bank statement programs.

As a Non QM Lender, NQM Funding offers dedicated broker support, scenario desk guidance, and fast turn times. Brokers who understand Flex Supreme guidelines will stand out in the market by aligning qualified borrowers with the right product from the start.

Avoiding Pitfalls: Common Disqualifiers and How to Stay Clear Many applications fail under Flex Supreme because of common missteps: insufficient tradelines, incomplete housing history, or unseasoned assets. Brokers should also ensure properties were not recently listed for sale and avoid submitting files with gift funds being used incorrectly.

Borrowers using rental income from a departure residence, short-term rentals, or non-leased units on a 2-4 unit property will not qualify. All rental income must be verified by tax returns or current leases in place.

Always verify borrower eligibility upfront. If your client doesn’t meet the Flex Supreme profile, it may be time to look into Flex Select, ITIN, or Investor DSCR options depending on the file.

Internal Resources to Streamline Your Process NQM Funding offers a variety of tools to help mortgage professionals close more deals:

• Use the Quick Quote form to assess loan scenarios.

• Learn more about Non QM Loans and alternative documentation products.

• Explore bank statement programs for self-employed borrowers.

• Reference the Foreign National or ITIN programs when applicable.

Leveraging NQM Funding for Your South Dakota Pipeline Brokers looking to grow their South Dakota pipelines should make Flex Supreme the centerpiece of their strategy for premium borrowers. With clean guidelines, clear expectations, and reliable support, NQM Funding empowers brokers to confidently offer competitive Non QM solutions.

Flex Supreme isn’t for every borrower. But when you have the right file in front of you, it delivers unmatched value and efficiency in one of the region’s most competitive housing markets.

Partnering with NQM Funding ensures your clients receive expert handling, and your loans move swiftly through underwriting. In markets where clean files matter more than ever, Flex Supreme is the secret weapon every South Dakota broker should have ready.