The strict requirements for investors and people just looking to get their foot on the property market means that the private real estate lending has become an increasingly popular option.

Also referred to as private hard money funds these are provided by private investors or private companies who are willing to lend money for a specific purchase.

This type of lending is a suitable option for homebuyers who know they will struggle to qualify for a conventional mortgage due to their credit history or level of debt. Self employed people may also encounter problems qualifying for a traditional mortgage if their income is not steady and fluctuates greatly at times.

It is much easier to qualify through the private lending route and the approval process is much shorter. This is normally completed in the space of a fortnight as opposed to thirty to forty five days for a regular mortgage. Whilst it is must be noted not everyone will be successful by taking the private lending option, the chances of being accepted are still generally quite high.

Fix and flippers tend to favour this route as, mentioned previously, the repayments periods are very short, (normally twelve to twenty four months) which fits into their plan to sell on the property quickly using it as part of their investment project.

Regardless of how good your credit history is, most conventional mortgages will not approve loans that require extensive work. If a home has been left vacant for a lengthy period of time significant repair work may be required, for example the plumbing may need to be redone, or the residence may have fallen victim to vandalism. This is where the private lending option also becomes more appealing.
Broadly speaking the largest rehab loan amount offered by private lenders is equal to 80% ARV (after repair value), with quite a few offering less. The more experience the applicant has had with rehabs and better their credit score is the higher the ARV will be. In simple terms if a company (or private individual) offers an ARV of 75% this means they will finance up to 75% of the expected valued of the property after renovations are complete.

For the investor this means they should expect to cover at least 20% or more of a properties ARV with their own money. It should also be noted that some lenders require that people pay for the renovation costs up front and then reimburse the investor after. This is mainly done as a safeguard to the lender, who naturally would want some guarantees the applicant will not default and will honour their agreement.

Taking all this into account, some things for the applicant to bear in mind before applying would be, are they comfortable with the short repayment timeframe, and the higher interest rates that come with this type of lending? As with all investments, it is important the individual does all his or her research before committing to such a project.

The rehab investor loan is perfectly suited for someone is purchasing a rental property that requires a little bit of work done or a fix and flipper, looking to get in and quickly with a healthy profit in their pocket.

To summarize they offer short approval times, interest only repayments and they consolidate the cost of the house and the renovation costs into one simple payment.

Fix and Flip loans are essentially short term loans for people looking to repair (fix) and sell on (flip) a property within a short period of time.

These type of investors broadly speaking are ideal candidates for rehab loans as the investment objective of the short term investor also matches favourably with the plus points of a hard money rehab loan.

One of the principle benefits of fix and flip financing is that the lifespan of a hard money rehab loan is generally twelve months, fitting in perfectly with the profile of short term fix and flippers who are looking to renovate quickly and sell on the property. Many of the houses that would be purchased at an auction for example would be financed with a short term rehab loan for example.

Another crucial plus point is that rehab loans can finance the purchase and renovation of assets in underpriced or poor condition, for example foreclosures. These are also referred to rehab construction loans. This is where they differ from loans for a conventional mortgage as they do not allow funding for renovations and stipulate that the properties must be in good condition prior to purchase. As previously mentioned rehab loans combine the costs of the initial purchase and the renovations in a single entity, simplifying things for all concerned.

House flipping loans on the whole will state that the payment is paid back in full at the end of the loans life (as stated, this is normally twelve months). Many of these loans will also offer interest only payments, so whilst the rehab loan will naturally have higher interest rates than the average mortgage, the monthly repayments may be lower.

Hard money lenders will have a selection of criteria to determine the ARV, or after repair value. As the name suggests this is the estimated value of the property once all the rehab and renovation has been completed on the property. Private hard money loans take into consideration factors such as the cost of the repairs and the projected value by doing sales comparisons with similar properties in the neighbourhood. They will also conduct two appraisals, one informing the real estate investor the current market value of the property and one stating the projected value once the renovation has been completed.

If an investor needs to purchase a property before selling an existing property they may want to consider a bridge loan. The flexible bridge loan is attractive to buyers as they allow you to purchase a new home without having to sell first. They are secured by the individuals existing home and the new funds can then be used as a down payment for the new residence. Applicants for a bridge loan will, in most cases have an existing first mortgage on an existing residence, they will then close the purchase of a new residence before selling their existing one, meaning for a certain timeframe they will own two properties.

Principle benefits of these types of loans are the buyer can immediately put their home on the market and make a new purchase without any restrictions. They may also not require monthly payments for a few months. Conversely it must be noted that these types of loans cost more than home equity loans.

Introducing Rehablend, providing an easy and efficient path for real estate investors and brokers who need to refinance or finance their properties.

Delivering solutions for a wide marketplace of people looking for loans including, but not limited to Real Estate investors, Brokers, Attorneys, Real Estate Agents, and Lenders. We quickly find a private lender that is seeking to fund deals in your local area that will be able to deal with your loan request.

Residential Rehab loans for Real Estate Investors offer guidance for new and experienced investors, helping to fund the purchase and renovation of residential properties. The rehab loan is a solution used by short term investors looking to fix and flip a property (renovate and then sell on for a profit) as well as long-term investors looking for renovation financing for rental properties. These have specific uses and borrower requirements.

Delivering solutions for a wide marketplace of people looking for loans including, but not limited to Real Estate Investors, Brokers, Attorneys, Real Estate Agents, and Lenders.

There are two principle types of rehab loans for real estate investors, the first would be a permanent mortgage for rehabs. These fund owner-occupied renovations as well as one single-unit investment property. These have specific uses and borrower requirements.

The Permanent Mortgage for Rehabs is offered by Fanny Mae (the commonly used term for the Federal Mortgage Association) and also a publicly traded company since 1968.

The second type of rehab loan is the Hard Money Rehab loan. These are loans offered by private lenders and help investors purchase and renovate investment properties. They can fund single-family houses as well as multi-unit properties. There are no limits to the number of properties an investor can finance. The flexibility that this of this type of this type of loan makes it the more commonly used of the two.

The rehab loans are available nationwide, allow homebuyers and homeowners to finance both the purchase or refinance along with the renovation of a home through a single mortgage, simplifying things for the individual These are ideal as they offer quick funding times with interest only payments. Also referred to as Flip Loans, this type of finance option is becoming increasingly common in the marketplace, allowing a wide range of consumers accesses to readily available finance options.

Principal benefits of this are that the buyer just has one loan and that there is a wide field scope of renovation projects that it allows for including aspects such as remodels for a disabled person, improving your homes energy efficiency, modernizing your residence and much more.

The Nationwide Rehab Program is available nationwide, providing several types of loans for investors including residential loans for private investors, real estate investors, rehab construction loans, multifamily rehab loans.

Rehab loans and refinancing options are available nationwide. The Rehablend Refinance Program allows members with an existing loan a simple and easy way to restructure their existing agreements. The starting loan amount begins at $50,000 ranging to a maximum of $50,000,000. Interest rates range from a very reasonable to 10.00% to 12.00% with the term duration from twelve to twenty-four months. The Nationwide Refinance Program generally takes 2 to 3 weeks to close, although it can be much quicker on occasions. No seasoning is required, all markets are considered acceptable for investing from nationwide urban, suburban and rural. A minimum personal FICO score of 500 is a very attainable pre-requisite as is the requirement that applicants have experience of at least three deals behind them. Acceptable are property types are 1-4 family residential and multifamily. Closing fees start at $1000.