If you're a short-term or long-term investor looking for quick funding and interest-only payments, then a rehab loan might be for you. These loans are used by new and experienced real estate investors to help purchase and renovate residential properties when they need funding. Rehab loans are great for fix-and-flip properties or for renovating rentals.
The fees associated with these loans will vary based on the lender. National lenders fees are more standardized, whereas a hard money lender will offer a wide range of rates and fees, since they deal with more atypical borrowers.
Two types of rehab loans available are:
- Permanent Mortgage for Rehabs
- Hard Money Rehab Loans
To learn more about the two types of rehab loans, check out this Rehab Loans for Real Estate guide on Fit Small Business.