Rehab loans in California for real estate investors offer investors with a great way to acquire and rehabilitate real estate properties. This is a special type of loan that is granted to real estate investors in California based on stringent lending conditions. The same type of loan is also available in other states and cities in the nation, however the terms for lending may differ slightly from state to state, city to city.
Rehab loans in California for real estate investors are attractive in many ways but before you decide to sign the dotted lines for one there are important things that should be known to you.
The following are some of the most important things that you should be aware of before you seek for this loan in California.
• The amount of money that is going to be given to you will be based on the value of the property. This is the projected value of the property once work on it is completed. The projected value on the property includes the cost of work that is to be performed.
• You can only get one loan, this loan comes with a fixed interest rate. The single loan that you get from the lender is supposed to finance both the purchase and renovation/rehabilitation of the property that you seek to invest in.
• Depending on the lender that you would like to get the loan from certain conditions in relations to the property may be attached such as: the home being a one family dwelling, safety and energy conservation systems must be installed be the completion of the rehabilitation process.
• As long as the foundation system of the home remains even though the home is to be demolished as part of the rehabilitation process, you can still get a rehab loan.
Note that items that are considered luxury items or overbuilding the area are usually not included in the cost of rehabilitation.