Can I Get A Rehabilitation Loan With Bad Credit?
It is possible to obtain a rehabilitation loan with bad credit. While less than stellar credit can make it difficult to get approved for some loans, there are certain types of rehabilitation loans for which individuals with poor credit can be approved.
If your property meets the requirements for a loan insured by the Federal Housing Administration (FHA) as most single and attached multi-family properties do, you can apply for an FHA 203k rehabilitation loan. Due to the FHA coverage, your credit check does not have to return perfect results. If you have bad credit, there is still a chance that you can get approved.
Another type of loan you can apply for if you have poor credit is a hard money rehabilitation loan. A hard money rehabilitation loan lender will most likely perform a credit check. However, it is the collateral that is of most importance in obtaining this type of loan.
While it is possible to get a rehabilitation loan with bad credit, that does not mean anyone can be approved. Depending on your income, assets, collateral and the property you are interested in renovating, your application may or may not be approved.
If your property meets the requirements for a loan insured by the Federal Housing Administration (FHA) as most single and attached multi-family properties do, you can apply for an FHA 203k rehabilitation loan. Due to the FHA coverage, your credit check does not have to return perfect results. If you have bad credit, there is still a chance that you can get approved.
Another type of loan you can apply for if you have poor credit is a hard money rehabilitation loan. A hard money rehabilitation loan lender will most likely perform a credit check. However, it is the collateral that is of most importance in obtaining this type of loan.
While it is possible to get a rehabilitation loan with bad credit, that does not mean anyone can be approved. Depending on your income, assets, collateral and the property you are interested in renovating, your application may or may not be approved.
