Mary Joe Sato

Branch Manager


30+ years of FHA Mortgage Experience



What is an FHA Rehab Loan?

Whether you’re looking to replace your roof or just want to modernize the kitchen of your home, an FHA Rehab loan insured by the Federal Housing Administration (FHA) could be the solution to your financing issues.

In general, an FHA Rehab loan allows you to wrap your renovation costs into your mortgage—that’s just one loan and one closing. The amount you borrow is a combination of the price of the home and the estimated price of the repairs, including labor and materials.

The first step in obtaining your rehabilitation loan is getting in contact with Mary Joe Sato who will walk you through the process and guide you the entire time.


How do you qualify?

You’ll need to qualify according to the standards of your lender, typically with a credit score of 640 or higher and with a maximum debt-to-income ratio of 43%, including the new monthly payment. The full loan amount must be at or below the maximum limit for FHA loans in your area.  An appraiser will estimate the value of the home in its current state and estimate the home’s future value based on the cost of the renovation.


Advantages of FHA Rehab Loans:



Repairs on your house can be expensive, the FHA Rehab Loan allows borrowers to finance the improvements into the new loan vs having to pay for the upgrades prior to closing.

The financing for this loan will include the appraised price, as well as the improvements you are either required to do to be able to live in the home, or that you want to do, such as upgrade the kitchen, bathroom, etc.


Competitive Interest Rates:

Historically, FHA Mortgage Loans have lower than average rates when compared to commercial or conventional financing programs.


Eligible Property Types:

Eligible property types are:

  • single family dwellings,
  • single family attached (like row houses) town homes and condominiums.

The renovation lending specialists at Leaf Funding Mortgage are committed to providing personalized service to you. From helping you understand the difference between a home construction loan and home improvement loan to answering all questions you may have, we’re ready to provide a description of how an FHA Rehab loan can work for your unique situation.


For More Information,

CALL Mary Joe Sato (808)791-1044