Benefits Of Rehab Loans

Renocation loan program helps preserve or increase neighborhood real estate values, as well as create employment opportunities for 203k Contractors.

• Finance Upgrades - Cosmetic and structural rehab work.
• Flexible Underwriting - Standard FHA credit guidelines.
• Get What You Want - Buy a property, turn it into a home.
• Increased Values - Improve the re-sale value and save money.
• Energy Efficient Upgrades - Save on utility expenses.
• Low Down Payment - Finance up to 96.5% plus upgrads.
• Perfect "Fixer-Upper" Loan - New paint, carpet, kitchen remodel... and the list goes on.
• Discounted Listings - Get a better deal when buying a property that needs a little TLC.

The 203k rehabilitation mortgage program was intended to expand homeownership opportunities and affordability while revitalizing communities and neighborhoods by providing financing for properties that need renovation work to make them livable or sellable.

FHA's primary goal is to help borrowers purchase a home they may not otherwise be able to finance based on the down payment requirements of most conventional loan programs. To further that goal, FHA offers favorable loan terms, higher loan limits, and flexible down payment options to qualified buyers.

Getting Started

You can Call us directly @ 000-000-0000 for any questions about renovation loans, OR CLICK HERE to submit a contact request online and we will have one of our licensed Rehab Loan Network members connect with you asap.

The following outline highlights the process of getting a renovation loan:

Step 1) Getting Pre-Qualified

Once we have an initial consultation to discuss your goals and questions, the first step is to complete a secure online loan application.

A loan application takes 10-15 minutes at your convenience, and allows the lender to pull a copy of your credit history and submit the initial application through preliminary underwriting for the purpose of matching your unique lending scenario with all available programs that you are eligible for.

At this point your lender can discuss actual rates, fees and program options, as well as issue a pre-qualification letter and home shopping / purchase offer instructions for your real estate agent.

Step 2) Search For A Property

It is beneficial to have your lender and real estate agent communicate ahead of time to ensure there are no misunderstandings about how to prepare purchase offer, what price range to search in and the types of eligible properties and improvements that are available for your specific type of renovation loan.

Step 3) Submitting A Purchase Offer

It is helpful if you and your agent can meet with a contractor to discuss renovation costs about a specific property before an offer has been submitted to the sellers.

Having an idea of the necessary and wish list upgrades will give your agent a better idea of how to negotiate the purchase price.

Step 4) Work Write-Up, Inspections, Appraisal

This is where the home-buyer, contractor and consultant meet, inspections are ordered and final costs are figured into a Work Write-Up and an appraiser is sent to the property to determine as-is and after-repair values.

Your lender will be involved in this process guiding you every step of the way.

Step 5) Final Underwriting

All of the property related reports and inspections are submitted to the bank along with any final borrower documentation for final underwriter review.

If there are questions about the property or appraisal, there may be a little back and forth between the lender, consultant or contractor.

6) Loan Funding

This is where the final closing documents are signed by the buyer and the seller receives their check from the bank for the purchase price.

At this point an escrow account is established for renovation costs.