First-lien collateral
Business-purpose loans secured by U.S. residential real estate.
Substantial renovation and value creation
Heavy Rehab and Value-Add Loans
Business-purpose financing for comprehensive residential rehabilitation and repositioning with detailed construction-draw schedules.
Indicative term
12–18 months
Leverage guideline
Up to 85% LTC / 75% LTV-ARV
Primary use
Substantial rehabilitation and value creation
Structure
Detailed draw schedule and oversight
03 / 05
Built for the repositioning stage.
Heavy rehab / value-add financing is designed for residential assets requiring comprehensive renovation, structural work and a detailed construction budget.
MRC applies a business-purpose first-lien real estate lending framework while matching term and leverage guidelines to the collateral and project stage.
Third-party diligence
Appraisal, title, document, borrower background and OFAC review.
Transaction controls
Product-specific leverage and, where applicable, verified construction-draw controls.
Business-purpose financing fit
Capital for substantial residential repositioning
Heavy rehabilitation differs from light renovation because the work may involve comprehensive repairs, major systems or structural changes. For an investment-focused transaction, careful scope definition, supporting budgets and an execution plan help evaluate collateral, leverage and the path to completed value.
Key considerations for this loan strategy
- Document the condition of the existing asset and the proposed scale of rehabilitation.
- Define the construction scope and budget, including work that may require staged draws.
- Consider appraisal, title, borrower diligence and independent project oversight.
- Connect the indicative 12–18 month term to realistic completion and repayment expectations.
These are discussion points, not a complete document checklist or eligibility determination. Learn more in the business-purpose real estate loans guide, or review MRC's underwriting framework.
Underwriting lens
Structure follows the project.
The published term and leverage figures are underwriting guidelines—not automatic approvals or standardized commitments.
Each financing opportunity is evaluated against its collateral, documentation, borrower diligence, project scope and applicable legal and compliance requirements.
Have a real opportunity that fits this strategy? Debbie can guide you through the details and submit it directly to MRC for review.
