Program Highlights:

Can be used by investors
Conventional financing (less strict than government loans)
Can combine the purchase and renovation or current liability and renovation into one loan.
Required investment based off total cost (acquisition/balance + rehab)
20% down for 1 unit
25% down for 2-4 units
Can be used on high-rise condos (203k’s can’t)
Loan sizes up to the conforming limits for your area
Can be used to close on homes deemed “non-financeable”
Cash-out Investor Rehab loans allowed (with appropriate seasoning*)
Rates 1-1.5% above current market as opposed to hard money lending
Only six months PITI reserves required on subject property
Can fund in all fifty states

A few examples of projects that would be ok:
1) $50,000 cash purchase and a rehab for $150,000 immediately after on a four unit. We would use the equity from the cash as the required investment and the rest would be financed.
2) $10,000 purchase with $140,000 in rehab on a condo (30k down required @ 20%)
3) Free and clear property where renovations already began but funds were running low. Cash-out can recoup initial costs and still take funds out to renovate.

Information provided by:

Rob Weber
Home Mortgage Consultant
Renovation Specialist
Wells Fargo Home Mortgage
511 W North Avenue
Chicago, IL 60610
312.274.4136 Office
847.404.7006 Cell
866.512.0551 Fax
Rob.Weber@wellsfargo.com
www.robweber.com