They will fund the purchase price, all rehab costs and closing costs SO LONG AS all of those costs don’t exceed 75% of the final appraised value.  There are 2 appraisals done – One at the Purchase and One at the time of the Take Out Loan.

Pre-qualification is for both the Re-Hab Loan and the Take-out Loan (permanent financing once repairs are done). To be eligible for the Re-Hab portion of the loan, you must have at least $20,000 in available cash assets and a 680 Credit Score.  The Permanent Loan generally follows FNMA guidelines.

You are your own contractor and up to  three draws can be taken during the 90 day Re-Hab period.

Obviously, I am not guaranteeing these terms as this is the information that I was told from the loan officer … but thought I’d pass it on as good information.  For more information, email and I will give you the referral.

We have a listing that would be great for this type of loan.  To see it, Click Here.