What is a property and rehab loan?
A property and rehab loan refinances an investment property you already own and funds the renovation work that remains. It fits when a project outgrows its original financing, a loan is maturing, or you want to recover cash already spent on the rehab.
Estimate only. Final leverage depends on credit, appraisal, budget review and final approval. This is not a term sheet or a commitment to lend.
Rehab refinance terms and requirements
What it covers
- Payoff of the existing loan
- Remaining hard costs: construction and materials
- Soft costs: permits, fees and carrying costs, where eligible
- Interest reserve
Cost basis
- Owned under 24 months: purchase price, completed work, remaining renovation and reserves
- Owned over 24 months: as-is value, renovation costs and reserves
Leverage
- Up to 100% of standard rehab
- Up to 85% of extensive rehab for experienced borrowers
- Up to 75% of after-repair value
Borrower
- LLC, LP, trust or corporation
- Credit from 660, varies by tier
- Personal guarantee preferred
- Business purpose, non-owner-occupied
What we will ask
- Address and current vs. after-rehab specs
- Payoff, purchase price, as-is value and ARV
- Hard and soft costs spent and remaining
- Term, exit strategy and closing date
From first review to closing
Tell us about it
A short intake or a call. Progress saves as you go.
CPA-led underwriting
We analyze the numbers, structure and documents before anything moves forward.
Term sheet or placement
On select investor programs, qualifying deals receive a term sheet from us. Other financing is structured and presented to sources in our network.
Approval and closing
Final approval, appraisal, title and insurance through funding. Steps vary by program.
Rehab refinance FAQs
Does work I have already paid for count?+
If you have owned the property less than 24 months, completed work is part of your cost basis, so documented spend can support a larger loan.
What is the difference between standard and extensive rehab?+
Extensive rehab covers larger-scope projects. Lenders reserve it for borrowers with more completed projects, at up to 85% of the rehab budget.
What exit strategies do lenders accept?+
Selling the property or refinancing into a long-term loan, such as a DSCR rental loan, once renovation is complete.