How Hard Is It to Get Approved for a Rehab Loan?
Getting the funding for house flipping is a necessary step for any house flipping project. Whether the money is sourced from a lending institution, a group of friends or your personal savings, it needs to come from somewhere.
The difficulty of gathering funding for your house flip depends on the source of the money, but there are things you can do to better position yourself for funding.
I can only speak for Rehab Financial Group about how hard it is to get approved and what you can do to help yourself if you do not get approved for the funding you need.
When Rehab Financial denies a loan, it's almost always going to be for cash, credit, or income reasons. It’s our policy to tell you what the issue was and why we couldn't approve you to take out a loan. For example, we'll tell you whether your credit is an issue and what steps you can take to improve your credit. In some situations, we'll talk about not having enough cash on hand so you may need to find a better way to raise more cash.
Occasionally individual borrowers are approved, but they are looking to take out a bigger loan than what we're willing to approve for them. When that takes place, we encourage you to find a different property that's not such a big project or not as expensive.
At Rehab Financial, we'll always tell you the reason for the denial and help you devise steps to get you to a position where you could be approved down the road.