Rehab Loans
Are you looking to purchase a home that needs renovation? Or, do you need to rehab your current home? Our rehab loans can help meet your needs. Rehab loans are a cost-effective and convenient way to combine home purchase or refinance with the cost of improving your home in one loan and one closing.
Rather than refinancing with higher cost home equity loans (cash-out refinance) or, home equity line of credit ( HELOC ), our rehab loans let you get the lower interest rates of a first mortgage. With rehab loans, you can borrow an amount based on the "as finished" value.
Rehab Loan Features
- Our rehab loans are available with long term fixed-rate and adjustable rate mortgages (ARM). A popular feature of rehab loans is their single set of closing costs and flexibility to lock in the interest rates on the rehabilitation and the permanent mortgage at the same time or, let them float.
- Just about any rehabilitation you want or need is covered by our rehab loans, as long as improvements are a permanent part of the property and add value. Other costs covered by our rehab loans can include financing rent on another home or apartment to live in while the rehab take place!
- For home purchases, rehab loans are based on the costs of the renovation project or on the "as-completed" value of the home after the renovations are finished. That means you can borrow more than the home's current value, knowing its value will increase after the improvements are finished.
Rehab loans are popular when buying foreclosures and other types of "fixer upper" homes. Just have a contractor provide an estimate for repairs. These estimates, plans and specifications will then be given to a licensed appraiser who will inspect the property and provide an opinion of the "as completed" value.
Depending on the cost and duration, payments on rehab loans can be similar to payments made during the construction phase of a contruction to permanent loan with a modification from rehab loan to permanent mortgage once work is complete. For smaller rehab loans, improvement costs can be rolled into the rehab loan and amortized over the term of the loan.
Depending on where your property is in Florida, our rehab loans can get you into a home with no out of pocket money. To learn more about our rehab loans, contact us online or, call one of our loan officers.