Rehab Financing is…
A loan targeted
exclusively to the rehabilitation of properties in need of repair
Your Down Payment is…
Nothing, as long as your loan amount is equal to or lower
than 90% of the ARV [After Repair Value].
The After Repair Value is…
The property's future value after all the repairs and
improvements have been made. This is determined by an independent appraiser familiar
with real estate in your area.
The Terms are…
Interim Loan is a 30-day balloon note. No
payments are due during interim period.
Conventional Loan is a fixed mortgage with a 10yr
interest only option available. Escrows can be waived over 80% Loan-To-Value
You Also Need to Know…
Time Frames
Pre-Qualification – usually within 24-48 hours
1st closing – 30 days from file submission
2nd closing – After
final appraisal
Loan Amounts No minimum
Maximum – Conventional
Loan Limit ($417,000)
Disbursement
As you make repairs a draw is released in installments of
$5,000 or more after inspection.
Creditworthiness 680
minimum FICO requirement for conventional financing. Borrower must be able to
prove income.
