How Rehab Loans Work
As a relationship rehab lender/hard money 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. Your first step would be to complete and send back our application along with the rehab loan application fee. 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:
|PROPERTY TYPE||Residential, non-owner occupied 1-4 family residential investment properties located within our lending area: Colorado, Connecticut, Delaware, Florida, Maryland, Massachusetts, New Hampshire, New Jersey, New York, North Carolina, Pennsylvania, Rhode Island, South Carolina and Virginia only.|
|LIEN POSITIONS||First mortgage only|
|STANDARD TERM||6-12 months|
|REHAB FUNDS||We lend 100% of the repair funds and 100% of the purchase price, up to 65% of the After Repair Value.|
|RELEASE OF REHAB FUNDS||Rehab funds are usually paid in one to three draws after verification of repairs, and mailed to you or wired directly to your account.|
|POINTS||Paid at closing|
|CLOSING COSTS||Paid at closing|
|GUARANTEE||Personal guarantee required|
|REQUIRED DOCUMENTS||Completed Rehab Financial Group loan application & supporting documents, including, but not limited to: (i) Two years of federal tax returns (both personal & business) (ii) Three to six months most recent consecutive bank statements (both perso|
|LOAN DOCUMENTATION||Purchase Agreement Detailed Repair List itemizing cost Builders Risk or Liability Insurance prepaid for term of loan Inspection Report verifying work to be done and cost (obtained by RFG) “As-Is” and “After-Repair” value Ap|
|QUICK CLOSINGS||Once a borrower has been approved, closings can be held within a few days of receipt of appraisal and inspection reports along with proof of payment.|
Call us toll-free at 1-866-257-2973 to speak with a lending specialist for additional information.