Ugly Houses Made to Sell With Rehab Loans

 Homeowners and real estate investors alike have always used rehab loans to fix up their properties. Before the financial meltdown, it was easy to obtain rehab loans from a bank in the form of a HELOC. These days it’s not so easy to get rehab loans from banks, since home equity has tumbled along with the credit scores for eligible borrowers.

 In order to get a really ugly house ready for sale, homeowners and real estate investors are putting money into curb appeal items and upgrades on finishes, including modern fixtures and appliances. But this takes money. And since banks aren’t eagerly stepping up to provide rehab loans anymore, it’s the hard money lenders who have answered the call for rehab loans.

 Hard money rehab loans are relatively easy to get since most hard money lenders don’t lend based on credit scores or income of the borrower. Rehab loans from hard money lenders have been the top choice for people who are preparing to sell an ugly house or a really outdated one.

 Although the FHA 203k loan is a bank loan intended for rehabs, borrowers must qualify, and this process takes a lot of time. Although the FHA rehab loan is a lower cost loan compared with a hard money rehab loan, it can take between 60 to 90 days to fund. For someone that wants to sell a property right now, this is too slow. For this reason, many people are going to hard money lenders for rehab loans, which have an average funding timeline of less than 2 weeks. Take a look at the curb appeal given to the house at this link: http://privatemoneyutah.com/rehab-loan-program/ What a difference a little money made on this house. Would you buy it?

 Posted by Corey Curwick of Private Money Utah on September 13, 2012

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