Renovation and Rehab Loans

Renovation & Rehab Loans

A rehab loan is a form of home financing or refinancing that enables home buyers and homeowners to combine both real estate costs and renovation expense into a single mortgage. In effect, it allows home buyers who are considering purchasing a fixer-upper that requires multiple repairs and significant rehabilitation efforts to roll the cost of both the property and these projects into one loan.


Current homeowners can also apply for a rehab loan and use it as a means through which to refinance their property and fund the costs of an upcoming renovation through a single mortgage. If you find that a property you’re wishing to purchase or refinance may require significant repairs and enhancements, the rehab loan could be a good choice for you.

Proceeds from a renovation loan and mortgage can be utilized to fund a variety of projects, including, but not limited to:

  • Improving a home’s curb appeal
  • Installing or repairing roofing and flooring
  • Making a home more energy-efficient
  • Fixing any health or safety hazards
  • Enhancing a home’s accessibility or functionality
  • Overhauling plumbing and waste systems
  • Redoing landscaping and groundwork
  • Repairing or renovating gutters and downspouts
  • Making changes that improve or modernize a home’s appearance


As a general rule, any upgrade or enhancement that doesn’t improve the or appeal of the property won’t be covered under a renovation loan. Certain types of properties may also be prohibited from application, such as mixed-use properties (which combine residential and commercial space) and co-ops.

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