What is a rehab loan?
A rehab loan finances a property plus the cost of renovating it. For investors, that usually means a hard money fix-and-flip loan: short-term, asset-based financing that funds the purchase and the construction budget, repaid when the property sells or refinances. For owner-occupants, it means a renovation mortgage such as FHA 203(k) or a conventional renovation loan.
How is hard money different from a bank loan?
A bank underwrites the borrower — tax returns, W-2s, debt ratios. A hard money lender underwrites the deal: what the property is worth today, what it will be worth after the work, and whether the plan holds up. That makes hard money the tool for properties banks will not touch — no kitchen, fire damage, mid-renovation — and for investors whose income is complex. Paramount Loan Services is a broker, so terms come from the lender we place your project with, and every file is underwritten on its own facts.
I live in the home I want to renovate. Is this the right loan?
Probably not — hard money is investor financing. Owner-occupants usually do better with an FHA 203(k) or conventional renovation mortgage, which we also arrange: see our construction and renovation loans. If you want to fund improvements with the equity you already have, compare a HELOC or HELOAN — our guide to HELOC vs. cash-out refinance explains the trade-off.
Do you work with first-time flippers?
Yes. Lenders weigh experience, but a first project with a solid plan and budget is financeable. As a broker we know which lenders welcome newer investors and which require a track record, so your file starts where it fits. Rebuilding after a loss is its own path — see construction loans to rebuild after the Los Angeles fires.
How do I start?
Call (818) 500-4009, 9:00 AM to 5:00 PM, Monday through Friday, or send us a message with the property address, your budget, and your exit plan. Financing a commercial building instead? See commercial loans.
