Loan Program Options
Transform your investment properties with ease using our hassle-free rehab loan options - apply today and watch your profits soar!
What is a Rehab Home Loan?
A Rehab Home Loan, also known as a Renovation Loan, allows borrowers to finance both the purchase price of a home and the cost of renovations under a single mortgage. This type of loan is perfect for buyers interested in fixer-uppers or homeowners looking to upgrade their current property.
Why consider a Rehab Home Loan?
Rehab loans provide a cost-effective way to buy and improve a home without requiring separate financing for renovations. Key benefits include:
- Finance renovations and purchase together: Combines the cost of home improvements with the mortgage, eliminating the need for a separate loan.
- Lower interest rates than personal loans or credit cards: Home improvement financing through a rehab loan costs less than high-interest alternatives.
- Flexible renovation options: Funds can be used for minor repairs, major renovations, or structural changes.
- Increase home value: Renovating with a rehab loan can build equity faster, making it a great investment.
- Expand home-buying options: Buyers can purchase homes that may not qualify for standard financing due to condition issues.
- Rehab loans make it easier to buy and transform homes, whether you’re purchasing a fixer-upper or updating an existing property.
Types of Rehab Home Loans
Rehab loans come in several types, each designed for different renovation needs. Understanding the available options can help borrowers choose the best loan for their project.
FHA 203(k) Rehab Loan
A government-backed loan from the Federal Housing Administration (FHA) that allows borrowers to finance a home purchase and renovations under a single mortgage.
Standard 203(k) Loan: Covers major renovations, structural repairs, and extensive remodeling.
Limited 203(k) Loan: For smaller renovations and non-structural improvements up to $35,000.
Fannie Mae HomeStyle® Loan
A conventional rehab loan that allows renovations on any type of home, including luxury upgrades, structural changes, and landscaping. This loan is available to both homebuyers and homeowners refinancing.
Freddie Mac CHOICERenovation® Loan
Similar to the HomeStyle® loan, this option allows buyers and homeowners to finance renovations, disaster-proofing, or aging-in-place modifications.
VA Renovation Loan
Available to eligible veterans, active-duty service members, and military spouses, this loan helps finance home improvements and repairs on an existing or newly purchased home.
Who Should Consider a Rehab Loan?
Rehab loans are a great choice for:
- Homebuyers looking for a fixer-upper that needs renovations before move-in.
- Current homeowners wanting to upgrade their home without using high-interest financing.
- Investors looking to finance a home purchase and renovation in one mortgage.
- With flexible financing options, lower rates than personal loans, and the ability to customize a home, rehab loans are a great way to turn a house into your dream home.
Your Goals. Your Home. Your Brightside.
Home financing should feel empowering, not overwhelming. At Brightside Mortgage, we’re committed to helping you achieve homeownership with confidence, clarity, and peace of mind. Let’s turn your homeownership dreams into reality—together.
