Construction Rehab Loans

Construction rehab loans in as compared to the other form of big loans or bank loans qualify borrowers, who can show in document that the capital was used for home reparation and the capital that may be further required for completion.

• As per the latest rule under the FHA 203(k) program, before every draw is made the borrower should have a assessment officer for construction planning and inspection.
• When certain amount of the loan money is disbursed amongst the contractors, the amount is said to be drawn.
• The completion time for the borrowers is up to 6 months for finishing the project.
• Consultants are disallowed from monitoring the work; only final inspection may be allowed in .
• Rehab loan plans involve a more hard work compared to traditional mortgage and it also offers great foreclosure for lenders.
• Under the FHA’s 203(k) program, down payment mortgages as little as 3.5% are available.
• Loan system for home requires minimum not exceeding 5 % down payment construction rehab loans.
• This program is available only for owner and occupants of property in .
• Rehab mortgage has to be in consonance with FHA loan limits.
• In high-cost areas the limit may be as high as $625,500.
• Borrowers can get up to 110% of homes evaluated value as per 203 (k) plans and the comparison chart varies with 95% with a home loan.
• Rehab loan money cannot be used for luxury reconstruction like swimming pool, water fountain etc.under construction rehab loans.