Rehab Loan – Fixer-Upper Money
Buying a home that needs some TLC? A rehab loan (like an FHA 203(k)) lets you finance the purchase & renovation costs in one loan. Perfect for turning that “needs some work” home into your dream home.
Best for: Buyers who want to buy & renovate all in one shot.
- Pros:
- One loan for both home purchase & repairs
- Good option for affordable homes that need work
- Cons:
- More paperwork and approval steps
- Loan amount is based on after-renovation value, not current value