Rehab-to-permanent financing combines renovation financing and long-term financing into a single loan. It is designed for investors who want to buy, improve, and hold a property.
How rehab-to-permanent financing works
This type of financing typically begins as a short-term construction or renovation loan and may convert to long-term financing once the work is complete. The structure can simplify the transition from renovation to a permanent loan.
Who it may suit
Rehab-to-permanent financing may suit investors planning to buy, renovate, and hold a property as a rental. It can also fit homeowners purchasing a property that needs work. Eligibility varies by program and lender.
What to consider
Consider the renovation scope, the timeline, and how the permanent financing terms align with your long-term goals. Ramzi can help you review whether this approach fits your situation.
Loan approval is not guaranteed. All loans are subject to application, underwriting, credit approval, property review, program guidelines, and applicable state licensing requirements. Rates, terms, loan programs, and availability are subject to change without notice. This is not a commitment to lend. This article is for educational purposes only and is not financial, tax, or legal advice. FBT Bank & Mortgage is an Equal Housing Lender.
