Rehab Loans for Fix and Flip Investors
Rehab loans are one of the most common and useful tools a real estate investor can use to purchase and renovate a house or multi-family residence before selling it for a profit or refinancing the property into a rental. Frequently, rehab loans are short term (6 – 18 months) and are interest-only for the duration of the loan – with principal repayment occurring after their client sells or refinances the property.
This is a great loan for real estate investors looking to achieve a quick turnaround on their investment and get paid. Many lenders don’t understand the unique challenges that come with lending to repair houses and are hesitant to lend to fix and flippers as a result. A good private lender is essential to a successful real estate investor and can be instrumental in completing your next investment project.
Rehab Loan Terms
- Interest Rate: 9 - 14%
- Points and Fees: 2 - 4%
- Loan Size: 50K - 500K
- Loan Term: 6 - 18 months
- No Application Fee
- Loan to After-Repair Value (ARV): up to 75%
- No Pre-Payment Penalty After 4 months
- Extensions Options Available
Fast, Easy, and No-Hassle Funding
A real estate rehab loan is used to purchase and renovate houses. Our loans are easy to qualify for with the right deal and as a result, we can provide proof of funds within 24 hours. With interest-only payments until the property has sold, our rehab loans are custom made for fix and flippers. We know how to get your next project done, fast.
Loan Requirements
Investor loans only (No Owner-Occupied)
Residential Single- and Multi- Family Residences only
First Lien Only
Pre-Paid Title Insurance Required
Construction Draws
The three most important values of a Rehab loan are: the purchase price, rehab costs, and the after-repair value. To offset the risk assumed by the lender, the rehab portion of the loan is held in escrow and is periodically released as construction progresses and reaches milestones set by the lender. Typically, a lender needs to check on the current progress before releasing the next construction draw, ensuring the project is progressing according to plan.
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