Rehab Loans

We Can Fund Your Client’s Rehab Loans

For a loan broker, there are few loans that present more challenges, or the potential for greater rewards, than a rehab loan. Most properties in need of rehabilitation are either in areas where banks and mortgage companies are reluctant to lend or require substantial amounts of work, which makes the same entities hesitant to do so as well. In other words, you must look outside traditional lending venues to help bring borrowers and lenders together when it comes to home rehab loans.

The mortgage loan broker plays a critical role when it comes to helping borrowers with dreams of home ownership get the funding they need. This allows them to transform homes that may look like monsters today into the beautiful masterpieces only they can envision.

Financing Options for Borrowers Interested in Rehabilitating Tired Older Homes

Lending institutions are still afraid of another housing crisis, like the one that took hold between 2007 and 2009. In an effort to avoid another similar situation, banks and mortgage lenders have tightened the requirements making homes in need of rehab even more difficult for buyers to secure financing for.

This has left an enormous hole in the mortgage market that requires the services of a loan broker to fill. That’s outstanding news for you that represents a whole new world of opportunities. When it comes to a home rehab loan you will find that there are hard money lenders interested in taking on these types of projects. Your mission is to pair the right lenders with hopeful buyers so that both parties can enjoy successful transactions. The boon for you is that you get paid for providing this valuable service.

Why Are Home Rehab Loans So Difficult to Secure Funding?

Rehab mortgage loans present practical challenges for traditional lending institutions, in that it is simpler to sell a property that is in pristine shape than one that needs extensive repairs and updates. Banks are committed to reducing their risks and making their money on the transactions in question. This is not possible if they may be taking a loss on the deal because repairs take too long, borrowers run out of money, or other problems arise that force foreclosures.

Because banks are afraid to lend to riskier propositions, the onus is on mortgage loan brokers, like you, to help people get the funding they need for their home ownership dreams – especially if the home in question needs a little work to restore its former glory.

These types of loans are especially popular for mortgage loan brokers in large cities where urban renewal is taking place. Rehab mortgage loans allow buyers to borrow the money that is necessary not only to purchase the home in question but also to make many of the repairs necessary to make that home shine.

Hard money rehab loans offer the simplest solutions for purchases such as these. Many will offer short terms, ideal for people interesting in fixing and flipping properties, although many banks today frown upon these practices when it comes to lending.

Loan Brokers Make Dreams Come True

As a loan broker, you can help to facilitate a wide range of loans ideal for home rehab situations. You get to play the role of a miracle worker by helping people make their dreams of home ownership and rehabilitation come true. All you need to do is find hard money lenders interested in offering a construction rehab loan to buyers and match them with a qualified buyer.

A mortgage broker will play many roles as part of your career. One of the most beautiful things you can do is to help a family breathe new life into an old home by helping them secure a rehab loan that will meet their needs. We can help you with that. Contact us today to learn more.