Fix Up Your Dream Home with a Rehab Loan from Lendmire

If you’ve found a home that needs some work to become perfect, a rehab loan can be the ideal solution. These loans allow you to finance both the purchase price and the renovation costs in one convenient mortgage, making it easier to turn a fixer-upper into your dream home.

What Is a Rehab Loan?

Rehab loans, also known as renovation loans, are designed to help buyers finance the cost of purchasing and renovating a home all in one package. Lendmire offers several options, including FHA 203(k) loans and conventional renovation loans, tailored to your specific needs.

FHA 203(k) Rehab Loans

An FHA 203(k) loan is a popular choice for buyers looking to purchase and renovate a home. This government-backed loan allows you to include the cost of repairs in your mortgage, making it more affordable to upgrade the home.

• Key Features:
  • Low Down Payment: Like other FHA loans, the 203(k) rehab loan allows for a down payment as low as 3.5%.
  • Single Mortgage: Combines the purchase price and renovation costs into one loan, simplifying the financing process.
  • Wide Range of Uses: Funds can be used for various repairs, including structural work, modernizing kitchens and bathrooms, and even adding new rooms.

Conventional Rehab Loans

Conventional renovation loans are another excellent option, especially for those who don’t qualify for FHA loans. These loans offer similar benefits, allowing you to finance both the home purchase and renovation costs with one mortgage.

• Key Features:
  • Higher Loan Limits: Conventional rehab loans may allow for higher loan amounts, making them suitable for larger or more extensive renovations.
  • Flexible Terms: Available with fixed or adjustable rates, and with loan terms that can be customized to fit your financial goals.

How Rehab Loans Work

• Single Loan Solution: Rehab loans combine the purchase price and renovation costs into one mortgage, simplifying the process and often resulting in lower interest rates than separate loans.
• Qualification Requirements: Rehab loans generally have similar qualification requirements to standard FHA or conventional loans, but you’ll need to provide additional documentation related to the renovation, such as cost estimates and a detailed plan.
• Payment Flexibility: Like other mortgage options at Lendmire, rehab loans come with no prepayment penalties, giving you the freedom to pay off your loan early if you choose.

Ready to Transform Your Fixer-Upper?

If you’re considering a rehab loan to finance the purchase and renovation of a home, Lendmire is here to help. Our mortgage experts can guide you through the process, helping you choose the right loan program and ensuring that you have all the information you need to make an informed decision.

Have Questions?

Give us a call! Our mortgage specialists are ready to answer all your questions and help you take the next step toward turning your fixer-upper into your dream home.