Wednesday, November 11, 2009

Real estate rehab loans up

According to ZINC Financial, these days more investors are applying for real estate rehab loans, or loans made to investors and collateralized against the quick-sale value of the property for which the loan is made. Also known as a real estate hard money loan, lenders often structure a rehab loan based on a 60 to 70% loan-to-value (LTV) ratio — the amount the lender can expect to get from the sale of a property within one to four months of default. ZINC launched its Investor Rehab Program, which provides investors with a possible seven-day submission process, in anticipation of increased demand of rea; estate rehab loans throughout 2009 and into 2010. RealtyTrac, the real-estate data provider, has anticipated that real estate foreclosures will peak in 2010.


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