What is a “rehab loan”? I was looking at a condo for sale and the listing said a rehab loan was necessary.

 A rehab loan is, generally, any loan to finance the costs of rehabilitation done to a multifamily housing development. Most rehab loans include acquisition of the property and rehabilitation, financing both in the same loan.

Single-family rehab loans will allow you to purchase the property and finance cost of repairs and rehabilitation done to the home prior to closing of escrow if rehab and/or repairs to the home are needed in order for the home to meet the value the lender requires.

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