A rehab loanallows you to put repair and renovation costs into a loan. These costs can be added to your mortgage. A rehab loan often refers to a FHA 203 (k) or a Fannie Mae HomesStyle loan, but it can refer to any loan that finances the purchase and repair (or renovation) of a property.
People also ask
What is a foreclosure rehab loan?
Foreclosure is one of the options available to a bank trying to recover the lost loan. Generally, a rehab loan can be used for nearly any type of home improvement project. Some optional projects, such as the building of pools or extravagant landscaping, may be ineligible for funding, especially from governmental sources.
What is a relationship rehab lender?
As a relationship rehab lender, it is our goal to be reliable and responsive to your needs. During our initial conversation, we will explain the process of a rehab loan and send you an application, if requested.
What is an FHA 203 (K) rehab loan?
A rehab loan is a form of financing that allows a borrower to fund both the renovation and purchase of a home for sale using a single loan. A rehab loan can also be used to refinance and make improvements to your current home. The FHA 203 (k) loan is backed by the government and is one of the most commonly used rehab loans available.
How do I apply for a rehab loan for house flipping?
Your first step would be to complete and send back our application along with the rehab loan application fee. You can also use our house flipping business plan template to help you get organized. Listed below are some of our criteria and information we require for approval of a rehab loan. As part of the rehab loan process, we require: