Frequently Asked Questions about Rehab Loans
Here at Maryland Private Mortgage, we’re the leading provider of rehab loans and hard money in the state of Maryland. And yes, we do Baltimore City rehab loans as well!
As the area’s leading private lender of rehab loans, we know the ins and outs of the business. This also means, we’ve heard just about every question you can think of when it comes to rehab loans. To help you find the answers you seek, we’ve compiled this quick FAQ on rehab loans in Maryland.
What are Rehab Loans?
A rehab loan is used primarily in the fixing up or “rehabilitation” of a home or building. These types of loans are used by businesses, contractors, commercial investors, or anyone looking to fix-up a home and then resell it—usually within the same year.
What is a “No DOC” loan?
A No-Doc loan, also known as a Doc-Lite loan or Low-Doc loan is a type of Baltimore city rehab loan which requires no to minimal income documentation from the borrower.
How Are Your Loan Terms Structured?
Our loans are “Interest Only” to keep payments to a minimum with No Pre-Payment penalty. Our most common loan product is for rehabbers that plan to fix and flip a property within 12 months; but we commonly do loans for 12-60 months.
What are your Down Payment Requirements?
We finance 100% of the rehab/renovation cost. Our typical down payment requirement is 10%-20% of the contract purchase price. Seller concessions are allowed.
Do you Charge a Pre-Payment Penalty?
NONE–We do not charge a Pre-Payment penalty on our rehab loans (some exceptions may apply for certain special loan scenarios).
What is the Max Loan to Value (LTV)?
We lend up to 65% of the “After Repaired Value”.
How fast can you close?
Our usual turnaround time for closing rehab loans in Maryland is 10 business days.
How do I apply to Get Pre-Qualified and a “Proof of Funds” letter to shop for offers?
To get pre-qualified, print, sign, and mail in our rehab loan application form with an application fee (one for each applicant, married couple’s complete one each). A cover sheet of any relevant or useful information we should know about to better qualify you or any special circumstances that you would like share with us that better explains information about your particular project is highly recommended.
What is the Loan Application Fee?
Our application fee is $35, $55 for a married couple. This fee helps cover the costs on our end of double-checking and processing the paper work.
We’ve helped hundreds of other investors, just like you. Our success depends on your success! Use the link to below to apply for a rehab loan right now!
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The Maryland Private Mortgage Lending Team