Rehabilitation Loans

What is a rehab loan?

Sometimes called a renovation loan, rehab loans allow homebuyers to finance both the purchase or refinance of a home through one single mortgage.

Real investors and some homeowners are purchasing homes that need to be renovated before sale at a discount, rehabilitating the property, and selling for a profit. Depending on whether you plan to renovate the home and then occupy it or are looking for financing to fix and flip, there are a few loan options worth considering.

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