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Owner Occupied Rehab Loans    are currently unavailable                                                                                                                     

Owner Occupied Rehab Loans are my specialty. Email Owner Occupied Rehab Loans questions. Homeowners need a better way to finance an owner occupied rehab. In the past, homeowners wishing to finance a rehab had few choices. These were 1) Pay for the rehab in cash. 2) Do a cash-out refinance based on the current value. 3) Take out an equity line, based on the current value. This places the burden of funding the rehab on the homeowner who will not be reimbursed until after the loans close. Owner occupied rehab loans address these issues.

I am a mortgage broker, specializing in owner occupied rehab loans, and represent 22 of the largest construction lenders offering owner occupied rehab loans. As an owner occupied rehab loans broker, I work for my client and not the lender, taking the time to understand your situation and placing your loans with the lender whose owner occupied rehab loans match your needs. I give you unbiased advice and support during the process. Owner occupied rehab loans are a unique part of mortgage banking and most brokers do not have the experience to guide you through the process. I have given you some basic information here but call to discuss your project. Lenders offer two types of rehab loans characterized by how they base interest rates during the construction phase. I refer to these approaches as “One Step” and “Two Step”

• Owner Occupied Rehab Loans Single Rate. "One Step" rehab loans protect you against increasing rates and extended lock fees. Interest only during construction and modifies into a permanent loan after. Stated income rehab loans are available

• Owner Occupied Rehab Loans Prime Rate Based. "Two Step" rehab loans allow you to borrow up to 95% of your total cost for a Principal Residence. Based on the Prime Rate during the construction period with interest only collected on funds disbursed.

Rehab loans are a variation of the "One Time Close" construction/perm product. The major advantage of rehab loans is that we lend against the finished or "as completed" value of the property rather than the current value as other lenders do. With programs other than rehab loans, you are out of luck if you do not have enough equity to complete the project. 

If you are purchasing a property that would be perfect if....... The first disbursement acquires the property and subsequent disbursements occur at predetermined points in the construction process. After construction, it modifies into the permanent loan saving the cost of a second closing.

If you are remodeling an existing property because it would be perfect if.... The first disbursement refinances any liens and advances the contractor any up front costs. Subsequent disbursements and modification follow the above process.

You may act as your own General Contractor if the costs are less than $50,000 and the "footprint" is not changed. If your project is large or will change the foundation we will require a fixed price contract with a licensed contractor.

Other products which can be used. We offer Rehab Second Trust or Rehab Home Equity Lines of Credit  using the as completed value..

I have included a list of the documentation needed to process Rehab Loans, a section on Rehab Loans Frequently Asked Questions, a section on rehab loans draw schedules, and information on rehab loans fees. I have a section on contractor requirements and contracts.

NEW! A newsletter giving a detailed description of rehab programs available by email.

One of the questions I frequently get from my clients is about finding a qualified and reliable contractor. After a great deal of research, I do recommend Reliable Remodeler. I have personally used their free service and was very pleased with the outcome. Please complete their contractor referral form for up to 4 local pre screened contractors.

As a Certified Mortgage Planning Specialist, I offer an analysis of your situation today can make suggestions on how small changes in how your debt is structured today can have a life changing effect in the years to come.  Read more about this free, no obligation service.

New! View my Wealthbuilder presentation and learn the safe way to manage your debt and fund your retirement.

Prequalify for your Owner Occupied Rehab Loans.