Rehab loans are short term solutions for property acquisition and repair. Typically investors sell the property or put into service as rental properties though a long term mortgage solution. see Texas Investment property loan overview.
LOAN GUIDELINES
| Geographic Area: |
Texas |
| Property Type: |
Residential (non-owner occupied), Commercial, Industrial, Land |
| Loan Size: |
$60,000 Minimum-No Lending Limit/Cap |
| Loan Term: |
1 year - 3 years |
| Interest Rate: |
Interest Only-Varying depending upon LTV, Credit, Term, Etc. |
| Loan Origination Fee: |
3-5 Points |
| Loan to Value: |
Up to 70% on residential rehab, usually less on land. |
| Pre-Payment Penalties: |
on some commercial hard money loans |
| Lien Position: |
First Lien Only |
| Credit Rating: |
600 minimum (Lower scores will require additional review and or fees) |
| Cross-Collateralization: |
possible (submit REO schedule for analysis) |
| Personal Guarantee: |
always on residential, sometimes on commmercial, ltv driven |
| Foreclosure Bailouts: |
yes |
- $350 appraisal fee in area of origination (appraisal fees may vary in different markets)
- Existing appraisals may be used upon review
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