Loan Officer Question....

[Eric Foster]

Ok Loan Officers and Mortgage Brokers... I need some help here!

I had a bank that I had been working with that offered rehab loans… Due to the mortgage mess that is going on, they have eliminated the program…

Anyone able to broker loans to lenders that still offer rehab programs?

P.S. They went on ARV (future value as if the repairs were already done) to calculate the LTV. They would finance the purchase price, closing costs, repairs, and interest reserves… No down payment was required as long as all those items all fit within the LTV.

So yes, it was a 100% non-owner rehab loan. This was a true non-owner product (no loan fraud stuff here) and they went to 80% LTV… Big scores, full doc. Their terms were 9% interest, no monthly payments, with a 12-month balloon.

FYI/TIP… Many of the “Construction” lenders would allow their construction loan to be used as a rehab loan, (many did not know this) as long as the repair costs were over $10k or so.

I heard Indymac was doing these? Everyone else I knew that were doing something similar, well… Their phones are disconnected.

I know… It was an awesome program… The “good ol days”!