Conventional Rehab Loan

 Conventional Rehab Loan provides the option of a no money down financing that covers the value of the property plus the cost of renovating the home. Below are a few facts about the Renovation Loan option, for more information don’t hesitate to fill out the form above and an experienced loan officer will guide you thru the process.

• The Conventional Rehab Loan can be used for home improvements with a borrower’s first mortgage, instead of a second mortgage or home equity line of credit.
• The maximum allowable loan-to-value (LTV), CLTV, and HCTLV ratios have been increased to 97% for 1-unit, principal residence, fixed-rate, purchase, and limited cash-out refinance (LCOR) transactions.
• The limit on eligible renovation funds has been increased to 75% of the lesser of the purchase price plus renovation costs, or the “as-completed” appraised value for purchase transactions; and 75% of the “as-completed” appraised value for refinance transactions. (Available in DU on March 17.).
• Must have the ability to finance the renovation cost, less than 10% of the appraisal value of $10,000.
• The home repairs must begin after closing so that there are no delayed funds for the seller.
• The borrower must choose his or her own contractor to perform the renovation.