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» Hard Money vs Rehab

Posted on 12/8/2004
Hard money loans are not rehab loans - rehab loans may or may not be hard money loans. A hard money loan is a loan based on the existing equity in the current condition of real estate. Rehab loans are made based on the borrower's credit worthiness and the estimated resale value of the real estate once rehab is completed. Hard money will get you about 65% of the purchase price of a property and cost you less. Rehab lenders will lend you up to 70% of the after-fixup price and will cost you substantially more.
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