Purchase Rehab Construction Loans Important Tips

10-14-2007

The first step of starting a rehab construction project is qualifying for a rehab construction loan. Working with a funding partner for your purchase rehab loan or construction loan will allow you to determine your end profit margin after the deduction of your total project costs. Rehab loans/rehab construction loans generally range from 70% to 80% After Repaired Value.
With a strong credit from 640+ and income documentation, you are able to get 100% for rehab financing which includes the purchase price of the property and rehab costs necessary for the project to reach the targeted after re-sale value or completed value supported by the sales comparables in the area.