Rehab Loan Program
Please note before applying – this program now requires a minimum 40% down payment
Rehab lending has become a very desirable option for many savvy investors. With the rapidly increasing inventory of foreclosed homes and other bank owned REO’s available to investors the rehab loan is the perfect financing tool to help keep out of pocket costs to a minimum. Our rehab program is designed for professional flippers in mind. We have created a niche program that is designed to help you maximize your profits by requiring little to no money down and through the rehab process.
For more information on how to apply for Rehab Loans program, please contact us today.
• Residential 1 – 4 Family, non owner occupied properties
• Condo conversions and 4+ unit apartment buildings considered on a case by case basis
• First mortgage only
• Six months with monthly extensions up to 13 months
• 85% to 100% financing of the total project cost, interest, points and closing costs can be financed to reduce funds required at closing
• Will loan up to 70% of the After-Repaired-Value
• Renovation funds are usually advanced in one to three draws, and wired directly to your account
• Rehab portion of the loan typically not to exceed 150% of acquisition cost unless otherwise approved
• No payments for up to six months
• Borrower may finance interest in loan proceeds at closing.
• Points can be rolled into loan balance at closing and may be partially rebated upon early payoff
• Points may vary if borrower qualifies for one of Advance Mortgage Lending’s “Line of Credit” programs
• Up to $1200 of closing costs can be financed into the loan proceeds
• Personal guarantee is always required
• Two years of Tax Returns (both personal and business)
• Three months of Bank Statements (both personal and business)
• Current statements supporting liquid assets
• Credit report
LOAN DOCUMENTATION: (For Each Loan)
• Purchase Agreement
• Summary of Rehab Work to be completed
• Builders Risk Insurance
• After-Repair-Value Appraisal (ARV)
• Title Policy
• Once a borrower has been approved, funding of individual transactions is typically within two weeks
• No need to reapply for next transactions.
At Advance Mortgage Lending, Inc. we strive to partner with serious rehab investors looking to grow your portfolio. We have implemented the following requirements for approval of our rehab loans. Compensating factors such as experience may allow some flexibility:
• Minimum 640 credit score
• $20,000 in assets (preferably liquid assets or assets able to be liquidated in case of emergency)
One of the advantages of setting up your capital in advance with Advance Mortgage Lending, Inc. is the ability to do multiple deals without having to reapply each time! We provide proof of funds upon approval which allows you to make competitive offers on properties. Watch your rehab business grow from the added volume of deals you can do with the help of Advance Mortgage Lending, Inc., and our rehab loans.
If you have additional questions or need assistance, please call us at 305-371-8181 or toll free at 855-224-3222.