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What is Rehab Loan ?

Rehab loan is a financial loan that's used mostly to rehabilitate a home or building.Renovo Financial is trusted Hard Money Loan lenders offering mortgage loan and rehab loans with lowest rate

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What is Rehab Loan ?

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  1. A rehab loan is a loan that is used primarily in the rehabilitation of home or building. These types of loans may be made through traditional lenders, but are often insured by a governmental agency to make the risk more acceptable to the lender. In the United States, one of the most common rehab loan programs is through the Housing and Urban Development 203(k) loan program. The 203(k) refers to the section of the National Housing Act of 1978 that deals with this type of loan for real estate, particularly housing. What is Rehab loan ?

  2. In the past, buying a home and fixing it up required a large down payment and a bunch of cash after closing.  Today a buyer can use the FHA 203-k Rehab Loan to acquire the property and fund the renovations in one simple mortgage. At Poli Mortgage we call the program the "Repair and Restore Home Loan". NOTE: The FHA 203-k is available for purchasing a home + borrowing for renovations. It is also available as a refinance, so you can borrow renovation funds to fix up the home you live in now. FHA 203-k Rehab Mortgage Program

  3. Savings- Repairs on a fixer-upper can be expensive, and the 203k Rehab Loan allows borrowers to finance the improvements into the new loan vs having to pay for the upgrades prior to closing. • Low Interest Rates - Historically, FHA Mortgage Loans have lower than average rates when compared to commercial or conventional financing programs. • Great Property Deals - Since Rehab Loans are designed for “fixer-uppers,” buyers can qualify for a loan on a home that needs work, and actually finance the construction costs / repairs up front. • Realtor Advantage - This program allows realtors to market homes in need of repair which would historically require a cash buyer.  Also sellers who cannot afford to perform the upfront work on their home can sell “as is” and allow the buyer an option to perform the required repairs as well as customize thier new home. • Great Equity Position- Buyers may purchase a HUD owned home or a bank foreclosure which are usually priced under value simply becuase of the repairs they require.  The required as well as the desired repairs are financed which will limit the out of pocket expense. Benefits Of Rehab Loans

  4. Long process-The closing process for this type of loan takes a little longer than the average loan. In most cases, you can expect to wait up to 45 days for the loan to go through. If something falls through and you are not approved, you have just wasted a lot of time. • Binding contracts - When you do a 203k loan for over $35,000, you have to come up with a plan for rehabbing the property. This involves having a contractor do the work for you and submitting a bid to the bank. If you get started and do not like the contractor, you are stuck with them for the remainder of the rehab process. • Listing agent confusion - One of the big problems with this program is that many listing agents do not fully understand it. Therefore, it may be difficult to get an offer accepted. If you can't get an offer accepted you can't make any money. • Competition - In many areas, there is a great deal of competition for foreclosed houses and bank-owned properties. Dealing with this program will usually involve several bids from different investors. Therefore, it can negate some of your profit potential.  DisadvantagesOf Rehab Loans

  5. Apply for your loan online at advantiscu.org. The application is simple, and you’ll receive a fast credit decision, usually within 24 to 48 hours. • Meet with our rehab mortgage consultant and review the renovation plan for the home you'd like to purchase (or your current home if you're looking to refinance). Our rehab mortgage consultant reviews and submits an approved project plan. • Once your appraisal is completed, we do a final review of your loan and then we go to closing where we’ll complete the purchase of your home or refinance your existing mortgage and set aside the remaining funds to pay for your renovations. • Next, we'll help you create your dream home as you complete the renovations according to the plan agreed upon by you and Advantis. You'll have the expert assistance of our rehab mortgage consultant and your approved general contractor to guide you along the way. • Move in to your home sweet home and enjoy instant value after the renovation is complete! The Rehab Mortgage in Five Easy Steps:

  6. www.renovofinancial.com Contact Us Address Renovo Financial, LLC 1016 W. Jackson Blvd., Suite 316 Chicago , IL60607 USA Phone : 312.243.3288 Fax : 773-442-0600 E-mail : drosen@renovofinancial.com

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