Real Estate Investor Rehab Loans

There are some cases where investors require what is known as a rehab loan to get back on their feet and get their investments back to where they need to be financially. Real estate investor rehab loans are often offered by hard money lenders, who deal with high-risk applicants that traditional banks, credit unions and other financial institutions would not approve for a loan. One of the many rehab loan providers is ZINC Financial LLC. Because they are a direct lender, decisions are made quickly with no middleman involved. Companies like this one know that investors have time-sensitive needs therefore applications are expedited.

This company, like others, can assist a real estate investor in leveraging his or her capital so they can obtain and rehabilitate real estate properties for the purposes of investing. One thing you should know about ZINC and various other hard money rehab lenders is that you will need to put in a portion of your own money to create a working relationship that is mutually profitable and helpful to both parties. They offer loans for real estate properties which, due to their unsuitable condition, are ineligible for regular mortgages. While the ZINC company only serves Nevada, California and Arizona, there are hard money lenders just like them all over the country.

Regardless of which lender you use, the goal is to get you a short term loan so you can quickly rehabilitate and profit from your investment. Loans can be designed to suit your particular needs and circumstances. A great deal of real estate investors want to renovate their investment properties and sell them quickly rather than holding onto the properties for an extended duration. If you have been through other financial avenues and been turned down, a hard money lender of this type is most likely your only solution.

In some cases, real estate investor rehab loans are backed by government insurance so the risk to the lender is minimized. This is because the government views real estate investing as a viable way of improving neighborhoods and grow the tax base in dilapidated areas that need renovation to make them more appealing to potential homebuyers. In addition to the hard money lenders referred to previously, you may want to check with the Housing and Urban Development (HUD) rehab loan program. This program is designed for the rehabilitation of residential real estate.

Rehab loans can often be used to renovate a property, and may even be used to buy the property. You can sometimes get a loan that covers not only the cost of the real estate but the cost of the necessary renovations. In order to qualify for the HUD program, your property must meet specific criteria and you must have good credit. Also, with the HUD program, the loans are for residential buildings housing between one and four families.

Another type of rehab loan you may be interested in is a community block grant. Cities utilize this program to revitalize aged homes which are not up to code. There are stringent income requirements and the program is only applicable to certain types of run-down areas. This type of loan does usually not need to be paid back until the family living in the home moves or it no longer serves as their main home.

As you can see, there are a variety of options available when it comes to real estate investor rehab loans. Before making a final decision regarding a hard money lender or government program, do plenty of research and make sure you are choosing the best option for your particular investment needs. The Internet is a vast source of information on this subject where you can learn more about the available programs and lenders in the United States.