Cosmetic Rehab Loans for Real Estate Investors 

Fast, Flexible Financing for Light Renovation Projects 

Cosmetic rehab loans are designed for real estate investors who want to acquire or refinance properties and complete non-structural improvements quickly—without the complexity of full-scale construction financing. 

At LM2 Investment Group, we provide fast approvals, flexible terms, and up to 95% LTC so you can move quickly on opportunities and maximize returns. 

Whether you’re updating a rental, preparing a flip, or improving a recently acquired property, our cosmetic rehab loan program gives you the capital to execute efficiently. 

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What Is a Cosmetic Rehab Loan? 

A cosmetic rehab loan is a short-term, interest-only loan used for properties that require light to moderate improvements—not structural renovations. 

Common Cosmetic Improvements Include: 

  • Flooring, paint, and interior finishes 
  • Kitchen and bathroom updates (non-structural) 
  • Fixtures, cabinets, and countertops 
  • Landscaping and curb appeal improvements 
  • Minor repairs and property refreshes 

These projects are typically faster, lower risk, and more predictable than full gut rehabs. 

Meet “The Two Mikes” of the LM2 Investment Group

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What Real Estate Investors Say About Working with Mike & Mike

Loan Highlights 

  • Loan Purpose: Purchase, rate/term refinance, delayed financing, or cash-out 
  • Up to 95% LTC 
  • Up to 75% ARV 
  • Loan Terms: 12, 15, 18, 21, or 24 months 
  • Interest-Only Payments 
  • Loan Amounts: $100,000 to $3,000,000 
  • Property Types: SFR, 2–4 units, condos (including non-warrantable) 
  • Entity Borrowers Only 

Eligible Property Types 

  • Single-family residences (attached or detached) 
  • 2–4 unit residential properties 
  • Warrantable condos 
  • Non-warrantable condos (eligible with LTV adjustment) 

Ineligible Projects (Important) 

This program is strictly for non-structural renovations. 

Not Allowed: 

  • Ground-up construction 
  • Structural modifications 
  • Full gut rehabs (down to studs) 
  • Adding square footage or additional units 
  • Roof removal or exterior wall removal 
  • Major mechanical, plumbing, or electrical work 
  • Fire or water-damaged properties with extensive repairs 

If your project includes these elements, a full rehab or construction loan would be more appropriate. 

Cash-Out vs. Limited Cash-Out 

Cash-Out Refinance 

  • Initial loan proceeds exceed total cost basis 
  • (Purchase price + documented improvements) 

Limited Cash-Out / Delayed Financing 

  • Loan proceeds do NOT exceed cost basis 
  • Common for recently acquired properties 
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Program Options 

Below is a simplified breakdown of available leverage tiers for cosmetic rehab loans: 

Program 

95% LTC 

90% LTC 

85% LTC 

80% LTC 

Experience 

6+ projects 

2+ projects 

2+ projects 

0+ (no experience) 

Min FICO 

700 

700 (660 w/ experience) 

660 

720 

Max LTC 

95% 

90% 

85% 

80% 

Initial Advance 

Up to 95% 

Up to 90% 

Up to 85% 

Up to 80% 

Rehab Holdback 

100% of budget 

100% of budget 

100% of budget 

100% of budget 

Max Budget 

No limit 

No limit 

No limit 

$250,000 

Non-Warrantable Condo 

Not eligible 

5% LTC reduction 

5% LTC reduction 

Not eligible 

Declining Markets 

Not eligible 

5% reduction 

5% reduction 

Not eligible 

Cash-Out 

Not eligible 

Not eligible 

Limited allowed (5% reduction) 

Not eligible 

Max LTV (ARV) 

75% 

65–75% (based on experience) 

70% 

65% 

Funding 

100% of budget (equity required upfront) 

Same 

Same 

Same 

Reserves 

5% of holdback + borrower equity gap across all tiers 

Special Property Considerations 

  • Vacation / Seasonal Markets: 
    • Max 85% LTC 
    • Additional 5–10% reduction depending on market strength 
  • Declining Markets: 
    • 5% reduction in LTC and LTV 
    • Minimum 2+ projects experience required 
  • Rural Properties: 
    • Case-by-case basis 

Experience Requirements 

  • No minimum experience required
  • First-time investors capped at $250,000 rehab budget
  • Larger loans or complex projects require demonstrated experience 
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Why Investors Choose Cosmetic Rehab Loans 

Faster Project Timelines 

No structural work means quicker renovations and faster exits. 

Lower Risk Profile 

Simpler scopes reduce construction uncertainty and cost overruns. 

Higher Velocity Investing 

Complete more deals per year with shorter hold periods. 

Flexible Financing 

LM2 focuses on property value and investment potential, not traditional income documentation.  

Why Work with LM2 Investment Group? 

  • 24-hour loan approvals 
  • Funding in 10-14 days 
  • Asset-based lending approach 
  • Local Arizona market expertise 
  • Flexible deal structuring 
  • Relationship-driven lending 

LM2 is built to help investors move fast, compete with cash buyers, and scale their portfolios efficiently. 

Call to Action Blocks 

Ready to Fund Your Next Deal? 

Get approved in as little as 24 hours and secure financing for your next cosmetic rehab project. 

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📞 Talk to a Loan Expert 

Have questions about your project or eligibility? 

Schedule a Call 

Get a Deal Review 

Submit your deal and we’ll structure financing tailored to your investment. 

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