What is Rehab Loan?


 

 

 

 

 

If you’ve found the perfect property for your needs, but it’s in need of some repairs, there may be a financial solution perfect for you. An FHA 203(k) rehab loan, also referred to as a renovation loan, allows homebuyers and homeowners to finance both the purchase or refinance along with the renovation of a home through a single mortgage.

By allowing the buyer to finance the cost of improvements into the purchase or refinance of a home, home rehab loans take the financial guesswork and frustration out of renovating a home.

Qualifying for a Rehab Loan:
In order to qualify for an FHA 203(k) home loan, you must meet certain requirements outlined by the Department of Housing and Urban Development (HUD). These requirements include finding a property and that property may need some cosmetic or updating, finding a qualified lender, and meeting all lender requirements, including minimum credit scores, debt-to-income ratios, and proof of income.

Benefits of a Rehab Loan:
Rehab loans are designed to help homeowners improve their existing home or buy a home that can benefit from upgrades, repairs, or renovations. This type of loan has a variety of benefits:

1) Create your own home equity fast by bringing your home up to date

2) Types of homes eligible for a rehab loan are usually listed at lower price

If you’re interested in checking out distressed properties that may be eligible for a rehab loan, contact Metrowest. We specialize in these types of sales and would love to help you start the process!

Ken Blevins

About Ken Blevins

Ken Blevins, CEO of Metrowest Real Estate Services, is a veteran in mortgage and default servicing with more than 24 years of experience in collections, foreclosure/bankruptcy, loss mitigation and real estate disposition (REO). Blevins was an original co-founder of Metrowest in 2003, a Real Estate Brokerage and Services Company focused on the resale, recovery and liquidation of distressed real estate in Denver, Colorado and surrounding metros. Blevins assumed the role of CEO in January 2014 and provides strategic direction and has management accountability for the day-to-day operations. Under his direction, Blevins drives all default management operations to maximize asset value recovery and reduce loss severity through a strategy focused on customer service and state of the art technology. Blevins has 18 years of direct operational experience in all facets of REO Asset Management having managed large national REO Disposition contracts for Fannie Mae, Freddie Mac, Wells Fargo, JP Morgan Chase, CitiFinancial, GMAC Mortgage and other various financial institutions. Blevins specialties include REO asset management, real estate investment, bulk REO acquisitions and distressed asset recovery and liquidation, and he has directed the resolution and liquidation of over ten billion in institutionally-owned residential real estate.

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