Rehab Loan:
Finance Your Home Purchase & Renovation in One Loan
What is a Rehab Loan?
A Rehab Loan—also known as a renovation loan—allows homebuyers to finance both the purchase price of a home and the cost of renovations into a single mortgage. These loans are ideal for buying fixer-uppers, making necessary repairs, or updating an older home without needing separate financing.
Types of Rehab Loans
FHA 203(k) Loan
A government-backed loan that helps buyers and homeowners finance renovations and repairs along with the mortgage.
HomeStyle Renovation Loan
A conventional loan that allows buyers to finance renovations with flexible guidelines.
VA Renovation Loan
A loan program that helps eligible veterans fund repairs and improvements on a home.
Why Choose a Rehab Loan?
✔️ One Loan for Purchase & Renovation – No need for separate financing; everything is combined into one mortgage.
✔️ Low Down Payment Options – FHA 203(k) loans require as little as 3.5% down.
✔️ Finance a Variety of Home Improvements – Cover structural repairs, kitchen remodels, new flooring, roofing, or energy-efficient upgrades.
✔️ Increase Home Value – Renovate your home and build equity faster.
✔️ Flexible Credit & Income Requirements – FHA 203(k) loans are easier to qualify for than many conventional options.
Who is a Rehab Loan For?
✔️ Homebuyers who want to purchase and renovate a home with a single loan.
✔️ Current homeowners looking to refinance and renovate their existing home.
✔️ Investors (for certain loan types) seeking to finance fixer-uppers.
✔️ Veterans eligible for VA renovation loans to upgrade a home.
How a Rehab Loan Works
1️⃣ Get Pre-Approved – Find out how much you qualify for, including renovation costs.
2️⃣ Choose a Property – Select a home that needs upgrades or repairs.
3️⃣ Work with a Contractor – Get a detailed repair estimate for the planned improvements.
4️⃣ Loan Processing & Approval – Your lender reviews renovation plans and finalizes your loan.
5️⃣ Renovations Begin – Funds are disbursed in stages to pay for home improvements.
6️⃣ Move Into Your Upgraded Home – Enjoy a beautifully renovated space without needing separate financing!
Rehab Loan vs. Traditional MortgageCode
| Feature | Rehab Loan | Traditional Mortgage |
|---|---|---|
| Finances Renovations | Yes | No |
| Down Payment | As low as 3.5% | Typically 5%-20% |
| Includes Repair Costs | Yes | No |
| Best For | Fixer-uppers, renovations | Move-in-ready homes |
What Our Clients Say
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Your Home Deserves the Best – Get Started Today!
A rehab loan allows you to buy and renovate your dream home with a single loan. Our team is here to guide you through every step of the process!
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