Rehabilitation Loan
What is a Rehabilitation Loan?
Are you a fixer-upper and ready to purchase your next project? Then this is the loan option for you because you can buy your soon-to-be home of your (or someone’s!) dreams AND pay for the renovations.
Benefits of a Rehabilitation Loan
One payment for two major endeavors – buying a home and remodeling it.
You can choose to apply for a conventional or FHA rehab mortgage loan.
Lower credit score and down payment requirements, plus lower interest rates.
You may be able to obtain temporary housing while the home is being refurbished.
Frequently Asked Questions
How do I qualify for this loan?
We encourage you to talk with our mortgage experts for more about the application process for this loan. If you choose the FHA rehab loan (also known as an FHA 203 (k) loan), you must have a credit score of at least 500. Also, down payments range from 3.5% to 10%, the home must be your primary residence and you must use contractors for all repairs and renovations.
What kind of renovations can I do?
You can remodel a kitchen or bathroom, add a room, add a porch, deck or patio, or put in new flooring. Basically, the remodel must yield extensive changes to the home. Talk with our mortgage experts if you are not sure your project will qualify for this type of loan.
Aren’t there different kinds of home renovation loans? Which one is right for me?
Great question! Again, if you are not sure about which loan is best for your needs, please reach out to one of our mortgage loan experts and they will help explain your options.
Ready to get started?
Securing your home mortgage loan with RailTrust is simple. Apply now and put our experts to work for you.