Frequently Asked Questions On Rehab Funding

1. How do I Pre-Qualify for a loan?

Go to the Pre-Qualification Checklis page of this website for complete

instructions, including a downloadable credit application.

2. What is your minimum loan amount? What is your maximum loan amount?

Rehab Funding's minimum loan is usually $30,000. Our maximum loan normally

tops out at $1,000,000.

3. Do you have a minimum credit score?

Rehab Funding's minimum credit score is normally 620. If you have a lower FICO score, yet have a good pay history, rehab experience, and strong cash reserves, we may have alternative ways to work with you.

4. What type of properties do you fund?

Rehab Funding limits its loans to residential properties (1-4 units). Rehab Funding  does not fund commercial, mixed use or large multi unit properties.

5. Can I do more that one loan at a time?

Rehab Funding does not have a specific number of loans that anyone can have at  one time. The limit will be based on each borrower's financial ability to hold additional loans.

6. Do I have to re-qualify each time I want to do a new loan with Rehab

Funding?

No. Rehab funding will not make you redo the pre-qualification process. You will  only need to send updated bank/investment or open lines of credit statements.

7. Does Rehab Funding charge pre-payment penalties?

No. The faster you fix the property up and sell or refinance it, the more profit you will earn. Real estate investors should never pay pre-payment penalties!

8. What are your terms, fees, and interest rates?

Each Rehab Funding loan plan has different terms and costs. For individual

breakdowns, please refer to the Payment Plans  section of this website.

9. Will you roll closing costs into your loan?

Rehab Funding will loan up to 65% of the ARV (after repair value) for any property. As long as the loan does not exceed this, you may receive 100% of the sale price, 100% of your repair costs, and even have some or all of your closing costs rolled into the loan. The bottom line is that if your loan to value is sufficiently strong, you can get into a property with little or no money down!

10. How can I get repair funds for the property?

These are construction loans, so at the time of the property settlement, all repair funds are sent to Rehab Funding to place in an escrow account. Periodically, as the work is being done, you may contact Rehab Funding and request that an inspection be ordered so that you can receive a draw. Please note that repair funds are a reimbursement for work that is completed. No repair money is actually fronted (unlike the funds to acquire the property, which are fronted). Therefore, you will need to have funds to start any rehab project (always figure that the typical contractor that you use will require 25% to 50% up front in order to commit their time and to purchase materials in advance).

You may order as many inspections as you like. There is no set schedule. However, each inspector does charge for their time (generally around $75 for follow up draw inspections, depending on distance traveled, etc.), so you should order inspections to meet your cash flow needs.

Rehab Funding will send your repair fund reimbursements to you in one of two ways. You may elect to have these payments mailed to you. Or if you wish, you may request that Rehab Funding wire you these funds. (The banks charge a small fee for the wiring, and you would be charged this fee).

11. Do you have to borrow repair funds?

You don’t have to borrow repair funds, however if Rehab Funding is loaning only  acquisition money, the loan will be based on 65% of the as is price, instead of 65% of the ARV as is normally the case.

12. Can I order my own appraisal?

No, Rehab Funding must order any appraisal for the property.

13. Do you provide proof of funds letters?

Yes! As long as you have sent in all information and been pre-approved by Rehab Funding.

14. How quickly can you close?

As long as you are pre-qualified, Rehab Funding will be ready to close within two weeks (subject to the title work and the appraisal being completed).

15. Can I live in the house during the course of the loan?

No. Rehab Funding only lends on properties that are non-owner occupied.

16. Do you ever discount your points for volume?

Yes. After your fifth deal, we will drop a point off all successive deals.