Renovation Loans: Requirements & Qualification Checklist

Getting a renovation loan can be a good way to pay for the purchase and repair of a property that is in bad shape. To get this type of loan, you will need to meet certain requirements. Here are a few requirements that you might have to meet in order to get a renovation loan.

Repairs

Most of the time, in order to qualify for this type of loan, you are going to have to perform certain repairs. The lender is going to want to make sure that everything is done properly and effectively. Because of this, they are most likely going to send a building inspector over to the property several times to make sure that everything is done according to code.

Type of Property

With most loans, you are also going to have to meet certain requirements when it comes to the type of property that can be purchased. For example, with the FHA 203K rehab loan, you are going to have to purchase a property that is a 1- to 4-family unit. This loan is not available for apartment buildings or any other type of multifamily dwelling.