Rehabilitation Loans

Three people reviewing a clipboard in a modern office setting.

When to Use a Rehab Loan

Rehab loans are perfect when a property needs repairs, upgrades, or full renovation before it can reach its full market value. They allow you to roll the purchase price and renovation budget into one convenient loan.

Borrowers typically use rehab loans for:

Fix‑and‑flip projects
Improving rental properties
Financing repairs before refinancing
Buying distressed or undervalued properties

Whether you plan to live in the home or flip it for profit, rehab loans offer the flexibility to fund both the purchase and the improvements.

How can you use a rehab loan?

A rehab loan can be used to both purchase the property and renovate in the same loan. Some of the uses for a rehab loan include:

Kitchen and bathroom remodels
Septic system improvements
Major appliance replacement
Heating and air conditioning upgrades
Improvements to make the home more energy efficient
Replacing carpet and flooring
Replacing the roof, new gutters and downspouts
Painting
Structural modifications
Improving disability access
Converting a single-family home into multiple units
Larger landscaping projects
Connecting to public water or sewer