A rehab loan is a specialized loan that is used, as the name implies, to rehabilitate a home or building. Often times these loans can be insured by a government agency as they are thought of as a good way to rehabilitate neighborhoods, or expand the property tax base in a specific area. Mortgage Services of America has the experience necessary to broker these loans and get you a quick response or approval for any type of rehab.
One of the most common rehab loans is done through HUD (Housing and Urban Development, which utilizes the National Housing Act of 1978.
Although you may think these loans are reserved for those only rehabilitating an existing property, it can also be used to purchase the property. When these loans are granted, you will receive more than the purchase price as the lender sees the opportunity as an investment toward rehabilitating neighborhoods and ultimately yielding a better reward. For more information, use the contact form below.