Typical Qualifications for a Rehab Project

[M. Greger]

What are the typical qualifications or criteria required to secure 100% financing for a rehab project?

[Katie Smith]

Hi there. You will find most lenders cap at 90% towards the purchase price and 100% of the rehab. Securing 100% financing for a project is quite rare because lenders typically want you to have some skin in the game. This means they want to see that you’re invested in the project by contributing your own funds, which reduces their risk. Usually, lenders will require a down payment or proof of other assets to ensure you have a vested interest in the property's success. Additionally, strong credit, a solid track record in similar projects, and a well-detailed plan for the rehab can also improve your chances of securing favorable financing terms.