This is a super cool product that we offer, because it allows the purchaser to purchase or refinance a home in less-than perfect condition, make immediate improvements, and pay for them over time!
Who does it benefit?
- Homebuyers – resolve property problems or required improvements right away!
- Homeowners – modernize or expand to enhance the value of your home
- Real estate agents – move hard-to-sell listings by creating the vision of remodeling possibilities
- Investors – purchase a property that is in need of repair or updates
- Applicants must meet regular loan program credit qualification requirements
Allowable renovations include:
- Replacement of electrical, hvac, plumbing, installation of well and/or septic tanks
- Aesthetic upgrades
- Structural improvements
- Handicap accommodations
- Completely rebuilding home on a modified existing foundation
Funds disbursement guidelines:
- Work must commence within 30 days of closing
- Renovation work cannot cease for more than 30 days
- Work must be completed within 6 months
How funds are disbursed:
- Fully funded at closing
- For purchase transactions – the seller receives their net proceeds, realtor is paid and a renovation escrow account is set up to pay the renovation costs
- For refinance transactions – the homeowner’s existing mortgage is paid in full and the reno funds are placed in an escrow account after a 3 day waiting period
- Funds are released in draws from the escrow account as work is completed
- The final draw – the customer will receive a final release form that confirm all the specified work is completed and shows how all funds were applied
If you’d like to see if your property would qualify for this product – contact me today and we’ll talk about it!