Definition - What does Rehabilitation Mortgage mean?
A rehabilitation mortgage is a mortgage that not only covers the cost of the home, but also provides funds that can be used to cover the cost of repairing, restoring, or otherwise improving the home. Rehabilitation mortgages can be more expensive than typical mortgages, but that is because they also offer more to the borrower.
Justipedia explains Rehabilitation Mortgage
Rehabilitation mortgages are useful for people who know in advance that the home they are purchasing is going to need a lot of work in order to get it into good condition. So, some people who are looking to finance both their purchasing of the home, and the improvement fees simply choose to bundle the two expenses together, and get a rehabilitation mortgage. This process is opposed to getting one mortgage for the home, and another loan for the rehabilitation of the home.
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