Many clients of mine zero in on properties that require some additional work. The next question is “how do we pay for these property repairs, and is there a way we can finance them?” This is a key question, and there are actually quite a few ways to make it work. The renovation or rehab mortgage is one of the key areas that a strategic approach to the mortgage conversation can create an unbelievable financial lift.
There are a few versions of the rehab mortgage, and keep in mind you can use the rehab mortgage for PURCHASE, as well as for a refinance.
There are 2 common pathways for accessing rehab financing, the FHA 203K program, or the Conforming Fannie Mae Homestyle program.