Rehab Mortgage Loans
- 01. Who It's For
- 02. Benefits
- 03. Eligibility
Is a Rehab Loan Right for Me?
A rehab loan may be right for you if you’re looking at purchasing a fixer-upper and you don’t want to front the capital for the repairs yourself – or if you want to buy and improve upon a property.
Rehab Loan Eligibility Requirements
- Credit score above 620
- Down payment of 3.5% or more
- Self-occupancy of the property
- Debt-to-income ratio below 45%
I’ve heard there are two kinds of rehab loans. What are they and what’s the difference?
1) The streamlined rehab loan is used when you want to make minor cosmetic changes to a house and the total rehab cost does not exceed $35,000. 2) The standard loan allows you to make substantial structural improvements, repairs, remodeling and updating to a house…or even build a new one.
What loan amount must I qualify on? The purchase price like a regular home loan or the total loan amount?
The total amount of funds that you are borrowing: the purchase price plus the funds for renovation.
Can I refinance to a rehab loan and work on my existing property?
Absolutely! Talk to us at UW Funding to get going or find out more.
Craig was instrumental in me and my wife buying our first home together. He was able to get us a great rate, even with my low [credit] score, and we were able to move into our new home. We are very pleased with the service and professionalism Craig provided us and will continue to work with him for all of our housing finances in the future.
We highly recommend UW Funding. We are on our second home purchase with Craig. You lose sleep buying your first home and it’s comforting to know you have the right lender looking out for your best interests. Two years later, we are on our second home and, just like the first, best rate, no fees and thousands of dollars saved!
We are so glad we trusted Craig with our refinance. We were able to take cash out with absolutely no fees! In hindsight, we wished we would have used him for our purchase. Sure enough, we had a straightforward closing with no surprises and we are truly grateful for our friends referring Craig to us.