Renovation & Rehab Loans

Fix up your fixer upper home with a Rehab Loan. If you have found the perfect home but it needs renovation, you can purchase the home and roll the costs of the renovation into your loan.

An FHA 203(k) Loan, also called a Renovation Loan, allows buyers to finance the cost of the home and the renovation in one mortgage with a low rate.

The VA also offers a similar option for military and veterans to purchase a home and finance the required renovations to bring it up to standards set by the VA.

Rehab loans have similar qualification requirements to a standard FHA or VA loan, with additional documentation needed related to the renovation.

A rehab loan allows you to finance the purchase of a home and the cost of eligible renovations or repairs with one mortgage. Instead of taking out a separate loan for the improvements, the renovation costs can be included in the overall financing. FHA 203(k) is one common type of rehabilitation loan.

Rehab loans may be available to homebuyers purchasing a property that needs repairs as well as existing homeowners looking to refinance and improve their current home. Specific eligibility requirements depend on the loan program and lender.

The loan combines the financing for the property with approved renovation costs. After closing, renovation funds are generally held in an escrow account and released as the approved work is completed and inspected.

Eligible improvements can include kitchen and bathroom renovations, roofing, plumbing, electrical and HVAC work, flooring, structural repairs, accessibility improvements, and certain energy-efficient upgrades. Eligible improvements vary by loan program.

Depending on the type of rehab loan, you may need a qualified contractor and detailed renovation plans or cost estimates. For an FHA Standard 203(k), an FHA-approved 203(k) consultant is required to help oversee the rehabilitation process.

REVIEWS

Customer Feedback

Brothers Financial would like to thank you for choosing us to take care of your mortgage needs. We understand the mortgage process can be very challenging, but our goal is to make it as easy as possible for you.

    
 
 
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   Rachel Eagleton 
 
 
 
 Trustindex verifies that the original source of the review is Google. Brian helped me get funding when I had been turned down by multiple other lenders due to being self-employed. The entire process was seamless and I am so grateful for his help. Thanks to him I get to make necessary repairs to my home and stay in it for years to come.
  
 
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   Aidan Tree 
 
 
 
 Trustindex verifies that the original source of the review is Google. Brody and Brian helped us so much in our home purchase every step of the way and made the process seamless and quick, and a at great rate!
  
 
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   Daphne Herrera 
 
 
 
 Trustindex verifies that the original source of the review is Google. Great experience! We’ve worked with Brian for about 7 years now. We live in Colorado and when Brian advised he was moving to TN, we were bummed. Thankfully, that doesn’t prevent us from doing business! This process was fairly streamline and fairly painless. Brian made sure to update us along the way and advise if there were additional documents needed. I definitely recommend using Brother’s Financial!!
  
 
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   Mary-Grace Griffin 
 
 
 
 Trustindex verifies that the original source of the review is Google. I highly recommend Brian Reid. He helped so much with the home buying experience. He was always willing to to answer questions and guide us through the process.
  
 
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   Ann Kömel 
 
 
 
 Trustindex verifies that the original source of the review is Google. Working with Brian made our home buying process much less stressful! His knowledge and expertise got us more favorable loan terms and interest rate. He was great to communicate with and very responsive as things change quickly. Can't recommend him enough!
  
 
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   Ayoka Moss 
 
 
 
 Trustindex verifies that the original source of the review is Google. Great time working with Brian on 4 refinances congruently!
  
 
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   Tammy Souther 
 
 
 
 Trustindex verifies that the original source of the review is Google. Brian and his team are fantastic! Highly recommend them for you home loan needs. Communicated well and made our process a breeze!
  
 
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   Nick Souther 
 
 
 
 Trustindex verifies that the original source of the review is Google. Amazing. Brian was amazing throughout the entire process. Very transparent, and involved with you as a client. He made a stressful experience ao much easier
  
 
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   Ginny Newman 
 
 
 
 Trustindex verifies that the original source of the review is Google. Brian was great to work with. He responded quickly and answered all our questions to help us understand and feel comfortable with the process.