What’s Rehabtastic?
{ That awesome feeling you get when you realize you can expand your
business through our suite of Rehab Loan Programs }
Rehab loans offer real opportunity. And our extensive suite of four “Rehabtastic” programs is one more way TMS can help you expand your ability to offer more loans. As leading investors in the industry, TMS:
- has experience with VA Alterations and Repairs, USDA OTC/CTP and USDA Pilot, and 203k (standard or limited)
- offers that high-level of expertise rehab loans require
- makes it easy for lenders to submit—we don’t have requirements outside of what the agency asks for
- allows flexibility in draw management on some products; if lender chooses to handle, they can

VA ALTERATIONS
AND REPAIRS
Allows Lenders to make VA-guaranteed loans to Veterans who wish to purchase or refi a home that needs alteration and/or repair.
- Purchases & Refinances of owner occupied primary residences only
- LGC must be provided prior to loan purchase
- Loans must be underwritten in accordance with the VA’s Handbook & meet all seasoning requirements
Eligible Property types
- Single family residences
- VA approved condos
- Manufactured homes

USDA CTP and
USDA CTP Pilot
This single-close loan combines the features of a construction loan and the traditional long-term permanent residential mortgage.
- Loans must conform to all the parameters set forth by the USDA SFH Guaranteed Loan Program in 7CFR 3555 & HB1-3555
USDA CTP/OTC:
- For loans using float rate or terms re-amortization refer to TMS Seller’s Manual for single or double closing construction to perm (the re-amortization along with the construction need to be completed prior to TMS purchasing the loan)
USDA PIlot:
- Loan Note Guarantee is required prior to purchase by TMS
- Subject Property must be located in one of the following states; Alabama, Arkansas, California, Colorado, Florida, Georgia, Indiana, Kentucky, Louisiana, Michigan, Missouri, Mississippi, New Mexico, New York, Ohio, Oregon, South Carolina, South Dakota, Tennessee, Texas and Washington.
- TMS will handle administration after loan has been purchased.
Eligible Property types
- Detached Single Family Stick Built Residence (SFR)
- Detached SFR PUD’s
- Site Condominiums
- Manufactured homes

FANNIE MAE
HOMESTYLE
Enables a borrower to purchase a property or refi an existing loan to finance improvements, renovations or repairs to a home at the time of purchase or as a refi transaction—up to 75% of the as-completed appraised value of the property.
- Renovation-related costs that may be considered as part of the total renovation costs include:
- Property Inspection fees
- Cost and fees for the title update
- Architectural and engineering fees
- Independent consultant fees
- Costs for required permits
- Other documented charges
- Up to 6 months payments (PITIA) if principal property cannot be occupied during renovation
- HomeReady Loans are eligible in combination with HomeStyle renovation; however the more restrictive requirements of HomeStyle or HomeReady renovation apply when these two products are combined on a loan.
- A HomeStyle Renovation mortgage may be either a fixed rate mortgage or an ARM loan. Original principal amount of the mortgage may not exceed Fannie Mae’s maximum allowable mortgage amount for a conventional first mortgage.
- The “Do It Yourself” Option is available for renovations made to one-unit properties by the borrower.
- Borrowers must meet the requirements of the B2-2-01, General Borrower Eligibility Requirements (07/28/2015)
Eligible Property types
- One-to-Four-Unit Principal Residence
- One-Unit Second home
- One-Unit investment property
- Manufactured homes
- Eligible PUD, Condo or Co-Op Project

203k
Rehabilitation FHA loans are available in two types: Limited 203k and a Standard 203k, depending on how much borrowers intend to spend on their renovation and any structural work that is required.
- $100,000 minimum loan amount for open rehabilitation and repairs; $50,000 minimum loan amount for closed/completed rehabilitation and repairs
- Manufactured is acceptable with 203(k) consultants only
- Rehabilitation self-help is not allowable
- Copy of check required for any rehabilitation funds released at closing for material costs to borrower and contractor
- Conversions/mixed use properties are allowable only when repair escrow account is closed by lender
- Follow FHA’s Lender’s Handbook 4000.1 for all requirements
The Money Source Inc. is not affiliated with or acting on behalf of or at the direction of HUD/FHA, VA, USDA, or the Federal government