What must a property do for a member to be eligible for a rehab loan?

For a member to be eligible for a rehab loan, the property must appraise at the purchase price. This requirement is crucial because the lender needs to ensure that the loan amount does not exceed the market value of the property after the repairs are completed. The appraisal determines the current market value based on the condition of the property and various factors such as location, comparable sales, and the state of the real estate market.

If the property does not appraise at the purchase price, it indicates that the member might be overpaying for the property, which could put the lender at risk. A successful appraisal helps protect both the lender's investment and the buyer’s interest, ensuring that the amount borrowed is justified by the property's value.

The other options do not specifically pertain to eligibility for a rehab loan. While a desirable neighborhood can influence the property's value, it doesn’t guarantee loan eligibility. Low property taxes are not a determining factor for loan approval, nor is the requirement for minimal repairs, as rehab loans often cater to properties needing significant work. The primary focus remains on the property's appraised value in relation to the loan amount sought.