Housing and Urban Development (HUD)
The U.S. Department of Housing and Urban Development (HUD) usually issues the most common rehab loans. These types of loans require an individual to have qualifying property by satisfying credit checks among other requirements, which were put into action by the Housing Act of 1978.
Loan Usage Guidelines
Rehab loans are designed to help homeowners with improvements on their existing home, but they can also serve other purposes. One example would be buying the property itself, which can lead to the final amount being higher than the appraised value at the time of initial loan acquisition. The loan is secured by the lender through projections of property additions. Learn more about qualifying for a rehab loan in Fresno by visiting our contact page.