Rehab loans for investment property fund the purchase and renovation of non-owner-occupied assets — the same product family investors call fix-and-flip, hard money, or bridge-to-sell financing. If you are buying distressed inventory, gutting a kitchen, or repositioning a small multifamily before resale or DSCR refi, a rehab loan is the short-term capital that closes before the bank’s 45-day clock starts.
Jaken Finance Group structures rehab holdbacks with draw inspections, interest-only payments during the project, and leverage tied to after-repair value (ARV) — not your W-2.
How rehab loans for investment property work
| Component | Typical structure |
|---|---|
| Acquisition advance | Up to ~90% of purchase on qualified files |
| Rehab holdback | 100% of documented scope held in escrow; released on draw |
| Term | 6–18 months interest-only |
| Underwriting | ARV comps, LTC/LTV, scope, liquidity, exit |
| Entity | LLC vesting standard |
Run deal economics on the fix and flip calculator then pre-qualify.
Rehab loan vs. fix-and-flip loan — same product
Google surfaces both terms under the same intent. Jaken treats them as one program:
- Rehab loan — emphasizes renovation draw component
- Fix and flip loan — emphasizes resale exit
- Hard money loan — emphasizes asset-based underwriting speed
Primary program hub: What is a hard money loan? · Beginner path: Fix and flip loans for beginners · High leverage: 100% financing
Geo rehab loan hubs
- Fix and flip loans Chicago · Fix and flip loans Illinois
- Fix and flip loans Florida · Fix and flip loans Texas
- Fix and flip loans Indiana · Fix and flip loans Georgia
Full state matrix: real estate financing by state.
Rehab draw schedules and inspections
Rehab holdbacks are not a single check at closing. Jaken releases capital in draw milestones tied to completed work:
| Draw phase | Typical release trigger |
|---|---|
| Initial advance | Acquisition funding at closing |
| Rough-in / mechanical | Plumbing, electrical, HVAC rough complete |
| Drywall / finishes | Kitchen, bath, flooring progress verified |
| Final draw | Punch list complete; photos match scope |
Each draw requires inspector or lender verification that spend aligns with the approved scope. Sponsors who front-load cosmetic work while neglecting mechanicals see draws rejected — and projects stall with unpaid contractors.
Budget 10% contingency inside the line-item scope, not as a vague add-on. Overruns without reserves force out-of-pocket mid-project or extension fees at maturity.
BRRRR exit: rehab loan to DSCR refi
Many investors use a rehab loan for the acquire-and-renovate leg, then refinance into a DSCR loan for investment property when the unit is leased. Jaken funds both legs — including no-seasoning cash-out on select stabilized files.
Rehab loan FAQ
What is a rehab loan for investment property?
A rehab loan funds acquisition plus renovation of a non-owner-occupied property — typically short-term hard money with interest-only payments and draw-based rehab holdbacks.
How much of the rehab will a hard money lender fund?
Qualified sponsors often access up to 90% of purchase plus 100% of documented rehab on fix-and-flip files. Leverage depends on ARV, LTC, experience, and liquidity.
Are rehab loans the same as fix and flip loans?
Yes — investors use the terms interchangeably. Both describe asset-based financing for buy-renovate-sell or BRRRR acquisitions on investment property.
How fast can rehab loans close?
Jaken typically closes in 7–14 business days with complete diligence — appraisal, title, scope, and entity docs aligned.
Submit your rehab loan scenario
Under contract on a property that needs work? Pre-qualify for fix and flip / rehab with address, ARV, and scope of work.
Rates, terms and conditions offered only to qualified borrowers and are subject to change at any time without notice. Closing times are in business days and commence upon receipt of appraisal payment and satisfaction of borrower conditions. Closing times may be delayed due to appraiser property access. All loans are subject to full underwriting for loan approvals. Jaken Finance Group only finances non-owner occupied investment properties.
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Jaken Finance Group, 2300 Barrington Road, Suite 400, Hoffman Estates, IL 60196