Purchase and Rehab Financing

This resource has been provided by Remax City Space agent Al Rabady. Be sure to check out Al’s Short Sale, REO, and Foreclosure page.

Do you need financing for the purchase AND rehabilitation of a bank owned, pre-foreclosure/short sale, estate sale, or other property in or around Philadelphia ? Check out these lending sources. They not only lend for the purchase of the property, but also provide funds for full rehab or remodeling!

Traditional Mortgages Don’t Always Work For Rehabs

Remember, your traditional mortgage will only finance a property in livable condition-it must have a working kitchen and bath, working heat, etc., prior to closing. Not so with Purchase/Rehab loans! Also, traditional mortgages do not provide rehab funds. Purchase/Rehab loans typically cost more than traditional loans, but they do more. Usually, the purchase/rehab loan is converted or refinanced to a traditional mortgage after the rehab is completed.

Your Purchase/Rehab Loan Options

The cheapest purchase/rehab loan is through the FHA 203k program, but this program is designed for owner occupied properties only. The FHA 203k loan is available from Arlington Capital and others.

Non owner-occupied purchase/rehab loans are available from all of the lenders below. Each lender has its own loan features and requirements, and each lender’s down payment requirement varies. If the purchase plus rehab costs are equal to or less than 65-70% of property’s After Repaired Value, you may be able to rehab with little to no down payment! Ask your lender for more details.

Arlington Capital
www.thinkarlington.com
215-639-8520

Brookview Financial
www.brookviewfinancial.com
877-734-2211

Omni National Bank
www.redevelopmentlending.com
610-684-6664

Stonehedge Funding
www.stonehedgefunding.com
askus1@stonehedgefunding.com
610-873-6022

Independent Mortgage Company
www.imc-loan.com
800-220-4040

ReCasa Financial Group
www.recasafinancial.com
jlivey@recasafinancial.com
614-221-6770

Gelt Financial
www.GeltFinancial.com
215-357-4955

Dixon Funding

www.dixonfunding.com

610-687-1079

The above mortgage companies are for the most part located near Philadelphia and are solid options if you’re considering rehab financing on a fixer upper property in the Philly area.

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