Today I’m joined by Matt Hoppe from Stearns Lending for some insight and answers on financing options for rehab loans.
Who should look into rehab loans?
The best candidate for this sort of loan tends to be buyers who, despite their best efforts, can’t find their dream home from the market’s supply; they’d like to have more of a say in their property’s design.
What type of programs are there?
Three loan programs exist and of the three, the one that best suits a buyer will depend on factors like the client’s ultimate goals, their credit, their access to down payment, etc.
What kind of down payment options are there?
For a first-time buyer, you can secure a rehab loan for as little as 3% down. Other factors like credit and the number of units in the property will also play a part in your down payment.
Are these loans geared toward owner occupants or for investment purposes?
These programs are customarily for buyers that intend to live in the property, but there are options for single-family investor homes as well. Using rehab funding, though, a buyer can purchase anything from a condo to a 4-unit property.
I appreciate Matt taking the time to help us gain an understanding of rehab loans.
If you have any questions about this or anything else real estate-related, don’t hesitate to let me know. I hope to hear from you soon!