Imagine finding a beautiful home and at first glance it is exactly what you are looking for. But the closer you inspect the property, the more you come to realize this house that you initially loved needed some major renovations. At first this may not seem like a huge hurdle until the disheartening realization unravels that home renovations are extremely costly.
If these additional costs are not able to be fit into your budget, there is fortunately an alternative to finding another home that may be considered uninhabitable by the banks that refuse to grant you a loan on this property. This is where a Rehab Loan could be your solution.
At Commercial Mortgage Depot, we are experts in providing funding for Rehab home projects. With our many years of experience, we understand that each home rehab project is unique and requires expert lending to maximize a project’s success. Whether you are looking to rehab single family homes, multi-family buildings, or build new construction, we know that having the right lender can make or break a project.
Before deciding on the type of funding that is needed for a project, there are several things that need to be reviewed:
- Rehab loans are non-owner occupied properties (investment properties only)
- Financing available for distressed, REO (bank owned) properties, or short sale investments
- They can also be utilized on second homes.
- The repairs can be structural in nature or cosmetic, but they must be attached to the property and add value.
- The only time appliances (stove and dishwasher) may be included in the renovation is if there is a full kitchen remodel including cabinets and countertops and the appliances (stove and dishwasher) will need to be built in/attached to the property.
These are just a few of the items to consider when deciding if a home rehab project is right for you. At Commercial Mortgage Depot we recommend meeting with a Rehab loan expert to assess your situation and find the right lending solution for your needs. For more information about scheduling a consultation please contact us at (973) 742–1111 or click here for a free quote.