Rehab Loan in Austin, TX

One Loan for the House and the Work

A rehab loan combines the price of a home and the cost of planned improvements into a single mortgage. Instead of buying with one loan and paying for repairs out of pocket or on credit cards, you finance both together and the repair money is paid out to contractors as the work progresses.

This lets buyers consider homes that need updates, which can widen your options in a competitive market.

Who Rehab Loans Help

• Buyers who find the right location but an outdated house.
• Homeowners who want to renovate and refinance at the same time.
• Buyers who prefer a single fixed-rate mortgage over separate loans.

When another loan is better

• You plan to resell quickly: look at a fix and flip home loan.
• You’re building from the ground up: see our construction home loan page.
• You’re a veteran buying a move-in-ready home: a VA purchase loan is simpler.
• The finished project will exceed the conforming limit: a jumbo home loan may be needed.

What You’ll Need

• A detailed, itemized contractor bid.
• Contractor license and insurance, as required by the program.
• The usual income, asset and credit documents.
• For larger projects, a consultant’s report under some programs.

Our Steps

1. Scope. We go over the work you have in mind and which program allows it.
2. Bids. Your contractor prepares an itemized estimate.
3. Appraisal. The appraiser values the home as it will be after the work.
4. Close and draw. Funds for the work are held and released as work is completed.

Rehab Loan Questions

Renovating Around Austin

Older homes in neighborhoods like Crestview, Allandale and Travis Heights often need updates, and permits and contractor schedules in the Austin area can take time. Lining up a reliable contractor early makes the whole loan move faster.