Residential Rehab Loans provide great opportunities for real estate investors to purchase homes in need of renovation and rehabilitation under terms that are more flexible than traditional and long-term mortgage loans. Residential Rehab loans are very useful for those investors who have an ability to find deals but unable to fund projects with conventional financing.
There are many options available for borrowers in residential hard money loans. For example, residential construction loans allow homeowners to finance construction and home improvement projects easily and with the flexibility that conventional loans cannot provide. These types of loans are designed to help the rehabilitation of properties with real investment potential.
Here are some key features of Residential Rehab Loans:
- No minimum credit score required for loan approval (property-based approval)
- Funding within 5-10 business days maximum
- No loan payments during the initial term
- Financing up to 85% of Purchase Price and 100% of Rehab
- Interest rates from 12% to 13% interest only
- 2-4 points as a loan fee (based primarily on loan size)
- Loan terms up to 12 months with no pre-payment penalty
- Monthly payments required
- Fast closings
Residential rehab loan is a very popular loan that many people use to fix up houses. It allows you to hang on to your savings when fixing up a broken-down house. Rehab loans are designed for “fixer-uppers.” Therefore, this loan will allow you to qualify for a home purchase that many other programs would not. You can get a house at a lower price than you normally would be able to on the open market.
The Bottom Line:
Repairs on a house can be very expensive. If you are depending on your savings, you could run out of money quickly. You might not be able to resell the house and then your savings are depleted. With a Residential hard money loan, you can borrow the money quickly on the low-interest rate with flexible loan terms and complete your project successfully to flip the house and earn profits.
Magna Capital Group, Inc. is one of the leading rehab hard money lender for real estate investors. We have many different loan programs to choose the right one for you to save your hundred of dollars on your monthly payments. We provide easy approval, fast funding, and 100% financing possibilities that make our residential rehab loans different from the rest.
Our residential hard money loans provide you with the fast funding and loan terms that you need to help you reach your real estate goals. If you are purchasing a residential property to rehab or seeking funds to rehab a property you already own, Call Us Today at (310) 734 4044 or Email at email@example.com.