A rehab loan is short-term, asset-based, business-purpose capital used to buy a property and fund the renovation. The capital source looks at the collateral, the work, the contingency, and the exit — not a W-2 story. This desk brokers those files. We do not fund them.
What it is used for
Typical story: acquire an as-is or discounted asset, complete a defined rehab, and then hold, refinance, rent, or sell. The hold is the work window plus whatever takeout you actually have. If the plan is only a wholesale-to-retail flip P&L, that conversation also lives on fixandflip.broker. If the work is done and rent already covers PITIA, that is usually a dscr.broker file. Interim purchase-to-takeout without a heavy construction story lives on bridgeloans.broker.
How it is usually structured
- Interest-only payments during a short term
- Points (origination) paid at close
- A loan sized against cost (LTC) and after-repair value (LTARV)
- Rehab funded on draws after inspection — not all cash on day one
- An exit: refinance, rent, hold, or sale after the work. Not flip-only.
Run the estimate on the Rehab & Renovation Loan Calculator. Caps, rate, and points there are your assumptions — not GI quotes.
Working definition
min(project cost × LTC, ARV × LTARV) — LTC only if ARV is omitted
Project cost is purchase + rehab + contingency. Cash to close is the purchase gap after the initial advance, plus points. Avg-draw IO is charged on average outstanding, not full-loan theater.
Business purpose / no owner-occupied
This desk is non-owner-occupied, business-purpose only. If you intend to live in the property, stop. We do not desk consumer mortgages, primary residences, FHA 203(k), or Fannie Mae HomeStyle.
Broker, not a lender
GI Realty packages and shops the file. The capital source underwrites and, if it funds, funds. Nothing on this site is a commitment to lend, a lock, or a credit decision.