A rehab loan is a type of loan that homeowners and investors can use to finance the acquisition and renovation of a home. These loans are designed to help people buy and fix up a home, allowing them to pay for the purchase of and repairs to the house, helping them meet their needs without spending too much money. Rehab loans are ideal because they combine acquisition and rehab financing into a single loan, making it a fast and easy way for investors to finance a project. There are several types of rehab loans available, including government-backed Federal Housing Administration (FHA) 203(k) loans, conventional options such as the Freddie Mac CHOICERenovation and Fannie Mae HomeStyle, and private loans-loan). The loan amount is typically determined by the ratio of loan amount divided by the value of the property, known as the loan to value (LTV) . Many lenders will only lend up to 65% of the current value of the property, and borrowers will always require a higher down payment. Rehab loans can be used to update, renovate, or improve many different types of properties, including residential real estate, commercial property, and investment property.