Are you looking for quick rehab loans on easy terms? We provide real estate investors loans a.k.a rehab loans at the best terms, so that you neither have to break your bank nor back. Skipping all the traditional, time-consuming standards of loan that banks and other mortgage brokerages follow, we ensure a simple, secure, and fast way to get your loan.

The real estate investor loans, Houston and Dallas lenders are providing, are usually short-term loans granted to purchase a property, be it a single story residence or an income generating property. These rehab loans can be extremely helpful for investors with low credit scores who want to invest in distressed properties and repairs.

What Are Rehab Or Real Estate Investors Loans?

Rehab loans are private loans acquired by real estate investors to buy and renovate the distressed properties. Permanent Rehab Mortgage, Investor LOC, and Hard Money Rehab Loan are the three types of these loans.

  • Permanent Rehab Loans are for the long-term investors wanting to renovate the property and rent it to tenants
  • Investor LOC  loans are for real–estate investors (in Dallas and Houston) looking for a line of credit to buy and rehabilitate properties
  • Hard Money Rehab loans are acquired by investors who want to fix-and-flip property without wasting time or filing paperwork

The limitations of a rehab loan depend on the nature of renovations considered. Rehab loans are perfect for fix and flippers as the repayment periods are short (12-24 months) which supports their plan to sell the renovated property quickly.

Rehab loans are usually based on a percentage of the property’s ARV (After Repair Value). Lenders usually offer 65 to 75 percent of ARV.

Real Estate investors usually use the 70% of ARV rule as a barometer while buying distressed real estate for their fix and flip attempts. It can be calculated by the following formula:

70% of ARV rule = (ARV x 0.7) – Rehab

Let’s look at the rehab loans available in Houston and Dallas, Texas in numbers…

  • Purchase: $100,000
  • Renovation expenses: $40,000
  • Rehab loan acquired 75% of 140,000, i-e. $105,000
  • Interest rate: 12 percent of 105,000, $5,250
  • ARV (After Repair Value): $200,000
  • 70% rule value: ($200,000 x 0.7) – 40,000, i-e., $10,000

How To Qualify For A Rehab Loan?

Although, these loans are simpler and quicker than traditional bank loans, yet there is an eligibility criterion to consider.

  • A loan application form to fill in with accurate details
  • Bank statements of the past two months and two years of tax return details
  • Copy of your driving license
  • 550 or higher credit score (the score requirement varies from lender to lender
  • A down payment
  • Fix and flipping experience
  • Owner occupancy of the property intended to be rehabilitated

Why Choose Investor Lending For Your Next Rehab Loan?

We are a trusted service to get your rehab loans, whether you are in Houston, Dallas or anywhere in Texas, we are always geared up to help you with our expertise and industry knowledge. Besides our process is simple and transparent; we won’t bombard piles of paperwork on you and there are no hidden charges; everything is crystal clear.