Property Damage & Disaster Restoration Blog: Long Island & New York City

203k Loans Made Simple? Yes, for Your Clients

Posted on Wed, Jul 15, 2009 @ 05:48 PM

Excellent article on 203k loans...

Source: Colleen Craig
Santa Clarita, CA
More about Colleen…
Southern California Mortgage Professional
Office Phone: (661) 310-8536
Cell Phone: (661) 310-8536
Email Colleen
http://www.colleencraig.com

203k MADE SIMPLE?

Okay, maybe not, but I will attempt to make it as simple as possible for the client to understand and want to read on. For many of us in the business who are " in the know" we forget that we need to go back to the basics and spell it out in simple terms for others to understand. So I've compiled some information based on my most recent commonly asked questions just this week.
In Southern California, FHA loans were just not utilized over the past 10 or so years because of the FHA Maximum Mortgage limits But now that the limits have been increased and the prices have decreased, FHA loans have become the most utilized loan in recent months. HOWEVER, because it was not a popular loan, you would be amazed at how many lenders/brokers do not know what they are doing. Especially when it comes to the 203k loan. I spoke to a client today that was given such mis-information it made me cringe.

Apparently they told the client that 203k loans were no longer being done (Gee, you think it was after realizing that they had no idea what they were doing?) and they tried to flip them into another loan. This was after telling my client that their loan amount would be for the contract price and the extra money would just be separate and sit in an impound account to be disbursed over the next 6 months. Okay partially true, the extra amount would be in escrow to be disbursed as the remodel progressed, but for free? Who pays for the extra 50,000 dollars you just borrowed for repairs? Your loan amount is for the entire amount you are borrowing. Makes sense right?

So what is a 203k loan and why use one?
When a buyer wants to buy a home that needs repairs utilizing FHA financing, normally the repairs would have to be completed prior to the close of escrow. The repairs would normally fall on the responsibility of the seller. With so many foreclosures in today's market, the bank is the seller. And many times the home in need of repair is listed "as is". Which in the past would require a cash buyer or conventional financing. This is another reason that people in the business decided to shy away from FHA loans. I believe it was pure ignorance of the programs that were available by the brokers and the realtors couldn't properly prepare their seller for what to expect that gave FHA loans a bitter taste.
My associate Jeff Belonger said it best in his post about ignoring what your listing agent tells you about FHA loans
Here we go....203k loans for dummies

* 203k loans allow you to FINANCE the cost of the repairs in the new loan amount. (Not to exceed 110% of the after improved value determined by the appraiser and 203k consultant) What does this mean? I buy a house for 200,000 that needs 50,000 in repairs and I can borrow the extra 50,000? Too good to be true? NOPE. That's it in a nutshell....
details please.........

* Down payment is based on the sale price PLUS the final cost of the repairs x 3.5% so for example:
Sale price is 200,000 (DO not calculate 3.5% on this) PLUS 50,000 in repairs/costs (which includes certain costs and reserves the lender will require) 250,000 x 3.5%. Down payment is $8750.00 (closing costs are separate as usual)

* Buyer will hire (lender can recommend) a HUD approved FHA 203k Consultant to go to the property with the buyer to determine the required repairs and wish list repairs.
The fee charged by the consultant can be included in the mortgage. The fee can range anywhere between $ 400 to $1200 depending on the repairs required. Please check with the consultant prior to scheduling your appointment.

*Buyer will obtain estimates from several licensed contractors for the work to be completed depending on how extensive the repairs.
Three estimates are recommended for each contractor but not necessary. The buyer can act as their own general contractor only if experienced and licensed. (FHA says experienced, but most investors require the buyer to be licensed) The contractors must provide documentation to be approved by the lender prior to approval.

The consultant will determine the "required" repairs versus the "wish list repairs". You must start with the required repairs and then move on from there for you wish list. This is an important step for the consultant and appraiser so that you don't over improve the home and exceed the comparable properties in the area.

* Once the consultant completes his report of required and wish list repairs, the lender will forward it to the appraiser for an "After Improved Value". This is where you may run into problems with OVER improving the property based on current values. Between the consultant, appraiser and buyer - the FINAL FINAL report will be tweeked to come up with a final report that the contractors will be hired to do.

* So now the file is submitted to underwriting and approved ( you need to qualify at the full amount you are borrowing of course, which may include your current mortgage payment for the home you will live in during the rehab period) and the normal steps for closing will occur.
(BIG PLUS - you can include 6 months of mortgage payments in the new loan amount since it's assumed that you will have TWO housing payments during the rehabilitation of the new home. This money will be deducted each month during the reahab process) This is optional.
* Closing occurs, and the work begins within 30 days of closing/funding. (This is when your mortgage payments start since this is when you started borrowing the money - however, if you included the 6 mths mtg payments, they will be deducted from escrow starting when your first payment is due)

* Disbursements are made throughout the following 6 months from the escrow account (normally 4 draws with one final inspection, but this can be increased for higher repair amounts) as the work is completed.

Remember you paid the seller for the price of the home, and then you borrowed an additional amount of X which is sitting in an escrow account to pay the contractors (your total loan is the total amount you borrowed)

Once the last disbursement is made and the final inspection showing COMPLETED AS PER THE CONTRACT........you are done! Simple as 1 2 3 - okay maybe not, but that's why having an experienced lender on your side is crucial!

There are specific properties and repair requirements for this type of loan, so please call me for specific details if this sounds like the right loan for your new home.
Please send me your before and after pics! I would love to see them and maybe even post them for people to see what can be done with this awesome program! Or contact Colleen Craig FHA 203k Specialist for more details

Happy Rehabbing!


Advanced Restoration Corporation is a full-service restoration contractor with the ability and 203(k) knowledge to provide complete Rehabilitation & Restoration services to your new home!

For more information about 203(k) loans and mortgage professionals authorized to generate FHA 203(k) loans, please contact Gary Matzelle at (516) 903-4107.

Tags: 203(k) loan, property damage, restoration companies, fha, advanced restoration, advanced restoration corporation, reconstruction, homeowner tips, disrepair, home repair, refinance, 203k, hud

CPSC Recall Alert: Battery Equalizer Fire Hazard

Posted on Wed, Jun 24, 2009 @ 11:03 AM

SmartSpark Energy Systems Recalls Battery Equalizers Due to Fire Hazard

FOR IMMEDIATE RELEASE

June 18, 2009 Release # 09-249

WASHINGTON, D.C. - The U.S. Consumer Product Safety Commission, in cooperation with the firm named below, today announced a voluntary recall of the following consumer product. Consumers should stop using recalled products immediately unless otherwise instructed.

Name of Product: BattEQ Battery Equalizers
Units: About 800
Manufacturer: SmartSpark Energy Systems Inc., of Champaign, Ill.

Hazard: The recalled equalizers can overheat, posing a fire and burn hazard to consumers. Incidents/Injuries: The firm has received one report of an equalizer that overheated which resulted in fire that caused damage to the equalizer and batteries. No injuries have been reported.

Description: The recalled battery equalizers are charge balancing devices designed to increase the performance and longevity of rechargeable batteries.

Sold at: Authorized distributors and retailers from July 2006 through March 2009 for about $300.
Manufactured in: United States

Remedy: Consumers should immediately stop using these recalled battery equalizers and contact SmartSpark for a full refund.

Consumer Contact: For additional information, contact SmartSpark at (800) 905-6137 anytime Monday through Friday or visit the firm’s Web site at
www.batteq.com
CPSC is still interested in receiving incident or injury reports that are either directly related to this product recall or involve a different hazard with the same product. Please tell us about it by visiting https://www.cpsc.gov/cgibin/incident.aspx


Advanced Restoration Corporation is a family-owned and operated full-service property damage/disaster restoration company with a combined 75 years experience in dealing with Fire Damage Restoration, Water Damage Restoration, Flood & Storm Damage, Mold Remediation, Smoke Damage Restoration and Reconstruction. We service Long Island (Nassau County, NY; Suffolk County, NY) and the New York Metro area.

Tags: water damage, burn hazard, fire recall, fire prevention, smoke damage, advanced restoration, reconstruction, suffolk county restoration, homeowner tips, restoration company, cpsc recall, go green

Disaster Strikes Your Business...Now What?

Posted on Mon, Jun 08, 2009 @ 03:43 PM

You own a business in New York (on Long Island) and you think "it" will never happen to you...

2:30AM...An electrical short sparks a small fire inside the walls of your building.

2:35AM...Dust, framing and insulation immediately catch fire and burn intensely.

2:45AM...Tremendous heat from the now out-of-control blaze sets off the sprinkler system.

3:15AM...The fire department arrives and begins putting out the flames.

4:30AM...The fire is out, but there is immense fire, smoke and water damage.

6:30AM...You arrive at your office to find out your building and contents are severely damaged by water, fire and smoke.

Now What???
Having the proper insurance in the event of a disaster (from flooding and water damage to storm and wind damage) is essential to ensure your business will be able to continue after property damage occurs.

Insurance Coverage
Inadequate insurance coverage can lead to major financial loss if your business is damaged, destroyed or simply interrupted for a period of time. Insurance policies vary, check with your agent or provider.

Meet with your insurance provider to review current coverage for such things as physical losses, flood coverage and business interruption.

  • Understand what it covers and what it does not.
  • Understand what your deductible is, if applicable.
  • Consider how you will pay creditors and employees.
  • Plan how you will provide for your own income if your business is interrupted.
  • Find out what records your insurance provider will want to see after an emergency and store them in a safe place.

Knowing who to call in the event of a disaster is also essential to get your business back up and running with minimal downtime. Ensure you have a pre-established relationship with a full service property damage restoration company. This will allow you to mitigate damage to your property structure, as well as minimaize business disruption.

One more thing....Never let your insurance lapse!!!

Tags: disaster, fire restoration, structural drying, flooding, burn hazard, fire prevention, smoke damage, advanced restoration, reconstruction, restoration, suffolk county restoration, disrepair, flood

203(k) Loan Application Process

Posted on Sat, Apr 25, 2009 @ 11:06 PM

The 203(k) Rehab Program is available through FHA approved lenders and is available in New York.

Here is a brief summary that provides the process for homeowners interested in applying for a 203(k) loan:

  1. Homebuyer Locates the Property.
  2. Preliminary Feasibility Analysis
  3. Sales Contract is Executed
  4. Homebuyer Selects Mortgage Lender
  5. Homebuyer Prepares Work Write-up and Cost Estimate.
  6. Lender Requests HUD Case Number
  7. Plan Reviewer Visits Property
  8. Appraiser Performs the Appraisal
  9. Lender Reviews the Application
  10. Issuance of Conditional Commitment
  11. Lender Prepares Firm Commitment Application
  12. Lender Issues Firm Commitment
  13. Mortgage Loan Closing
  14. Mortgage Insurance Endorsement
  15. Rehabilitation Construction Begins
  16. Releases from Rehabilitation Escrow Account
  17. Completion of Work/Final Inspection

Advanced Restoration Corporation is a full-service 203(k) restoration contractor with the ability to provide complete Rehabilitation & Restoration services to your new home! We work closely with all FHA approved lenders and are committed to providing professional service throughout the NY Metro area.

For more information about mortgage companies authorized to generate FHA 203(k) loans, please contact Gary Matzelle at (800) 693- 6263 or send an email to gmatzelle@advancedrestoration.com

Tags: 203(k) loan, remodeling, advanced restoration, advanced restoration corporation, reconstruction, restoration, emergency service, homeowner tips, disrepair, rebuild, home repair, fire protection

203(k) Re-hab/Restoration Loans- What Can You Do?

Posted on Wed, Apr 22, 2009 @ 01:45 PM

Pursuing an FHA 203(k) loan enables homebuyers and homeowners to finance both the purchase (or refinancing) of a house and the cost of its rehabilitation through a single mortgage or to finance the rehabilitation of their existing home.

The extent of the rehabilitation covered by a 203(k) may range from relatively minor (minimum of $5000 in cost) to virtual reconstruction: a home that has been demolished or will be restored as part of rehabilitation is eligible.
Section 203(k) insured loans can finance the rehabilitation of the residential portion of a property that also has non-residential uses; they can also cover the conversion of a property of any size to a one-to-four unit structure.

The types of improvements that borrowers may make using Section 203(k) financing include:

  • Structural alterations and reconstruction
  • Modernization and improvements to the home's function
  • Elimination of health and safety hazards
  • Changes that improve appearance and eliminate obsolescence
  • Reconditioning or replacing plumbing; installing a well and/or septic system
  • Adding or replacing roofing, gutters, and downspouts
  • Adding or replacing floors and/or floor treatments
  • Major landscape work and site improvements
  • Enhancing accessibility for a disabled person
  • Making energy conservation improvements

Advanced Restoration Corporation is located in New York and is a general contractor/ restoration company that specializes in the rehabilitation of homes in disrepair. We are affiliated with various mortgage companies and have experience with contractor requirements associated with a 203 (k) loan.
For more information on partnering with an experienced company ready to rebuild your dream house, contact Gary Matzelle at (516)903-4107. Service area includes: Nassau County, Suffolk County, Queens, Manhattan, Staten Island, Brooklyn and The Bronx.

Tags: disaster, 203(k) loan, fire restoration, water damage restoration, mold, smoke damage, advanced restoration, advanced restoration corporation, reconstruction, disrepair, rebuild, water leaks, weather

Portable Power Sources Recalled: Fire Hazard

Posted on Wed, Apr 15, 2009 @ 05:04 PM

Portable Power Sources Recalled Due to Fire Hazard

Source: CPSC

U.S. Consumer Product Safety Commission
Office of Information and Public Affairs
Washington, DC 20207

FOR IMMEDIATE RELEASEApril 2, 2009Release #09-182
Firm's Recall Hotline: (800) 233-0462CPSC Recall Hotline: (800) 638-2772CPSC Media Contact: (301) 504-7908

Best Buy Announces the Recall of Certain Rocketfish Universal Portable Power Sources Due to Fire HazardWASHINGTON, D.C. - The U.S. Consumer Product Safety Commission, in cooperation with the firm named below, today announced a voluntary recall of the following consumer product. Consumers should stop using recalled products immediately unless otherwise instructed.

Name of Product: Rocketfish Model RF-INV80 Universal AC/DC/USB Portable Power Source

Units: About 1,400

Importer: Best Buy Co. Inc., of Richfield, Minn.

Hazard: While charging the battery, the power source can unexpectedly ignite, posing a fire hazard to consumers.

Incidents/Injuries: The firm has received three reports of fires resulting in minor property damage. No injuries reported.

Description: This recall involves Rocketfish Universal AC/DC/USB portal power sources with model number RF-INV80. The model number is printed on the back of the power source and “Rocketfish” is printed on the cover.

Sold exclusively at: Best Buy stores nationwide and at bestbuy.com from July 2008 through February 2009 for about $100.

Manufactured in: China

Remedy: Consumers should immediately stop using the recalled power sources and contact Best Buy to receive a gift card for the value of the product.

Consumer Contact: For additional information, contact Best Buy at (800) 233-0462 between 9 a.m. and 9 p.m. CT daily, or visit the firm’s Web site at
http://www.bestbuy.com/site/olspage.jsp?id=pcmcat114800050015&type=category


Advanced Restoration Corporation is a family-owned and operated full-service property damage restoration company with a combined 75 years experience in dealing with Fire Damage Restoration, Water Damage Restoration, Flood & Storm Damage, Mold Remediation, Smoke Damage Restoration and Reconstruction. We service Long Island (Nassau County, NY; Suffolk County, NY) and the New York Metro area. Call us at: (800)693-6263.

Tags: disaster, fire restoration, flooding, burn hazard, fire recall, fire prevention, advanced restoration, advanced restoration corporation, reconstruction, restoration, fire protection, cpsc recall

Will an Emergency Shut You Down?

Posted on Fri, Apr 10, 2009 @ 01:35 PM

A professional facility manager or property owner does not question the possibility of a disaster, but asks “what could happen, and when?”

Whether it is a natural disaster such as severe storms, floods or earthquakes, or the far more common man-made emergencies which include fire, smoke, pipe burst or structural damage, a well prepared manager/owner is ready to handle these types of problems and has a business continuity plan in place.

Pre-Select a Restoration Contractor!

Pre-selecting a multi-faceted restoration contractor is a critical part of any written Emergency Procedure plan. The day after a disaster, when the management team is under incredible stress, is not the time to search for a restoration contractor or emergency response contractor.

Be Prepared, Plan Ahead!

Advanced Restoration, a DKI member company, provides the following:

  • 24/7 Emergency Response
  • Full Service Property Damage Restoration
  • Experience, Expertise & Technology

Don't wait for an emergency to select your emergency contractor. Look for the best service and for the contractor who's willing to work with you when your disaster strikes...even if it's Christmas Eve or a Sunday night.

As a full service restoration company, Advanced Restoration is capable of handling major damage to a structure, including:

Water Damage Mitigation

Mold Remediation

Fire & Smoke Damage

Board-Up and Tarping

Complete Reconstruction

Start protecting your investments today! Call Advanced Restoration, a DKI Member Company that is ready to partner with you. Telephone: (800) 693-6263. Advanced Restoration services the New York Metro area, including Nassau and Suffolk Counties.

Tags: disaster, fire restoration, dki, advanced restoration, long island water damage, mold remediation, reconstruction, restoration, emergency service, restoration company, environment, water leaks

Advanced Restoration Corporation Joins Disaster Kleenup International

Posted on Mon, Mar 23, 2009 @ 12:21 PM

Disaster Kleenup International, Inc., North America's largest disaster restoration contracting organization, today announced that Advanced Restoration Corporation of West Babylon, New York, has joined the DKI network. Advanced Restoration Corporation has provided insurance restoration in the West Babylon marketplace since 1990.

By virtue of its DKI membership, Advanced Restoration Corporation can employ DKI's 24 hour call center, its DIAMOND claims tracking technology, and other tools to enhance their ability to serve their insurance and corporate customers. Advanced Restoration Corporation also gains access to DKI training seminars and workshops which ensure that they remain abreast of all changes in this rapidly evolving industry.

"We are delighted to welcome Advanced Restoration Corporation into the rapidly growing DKI network," stated Dale Sailer, DKI's President. "Advanced Restoration Corporation's commitment to quick response, superior workmanship and outstanding customer service reaffirms DKI's position in the marketplace as The Source for Quality Restoration. We look forward to a long and rewarding association."

Advanced Restoration Corporation President Brian G. Martin is pleased that the company is a part of the DKI network, giving them the opportunity to work in partnership with other quality firms. The DKI network will allow Advanced Restoration Corporation to expand their scope of service, introduce them to new markets and ensure the company's success long into the future.

In addition to the benefits of DKI's technology and training capabilities, Advanced Restoration Corporation will also be able to utilize the Disaster Kleenup branding in its marketing efforts, participate in its various coop programs, and leverage DKI's corporate marketing efforts.


About DKI Disaster Kleenup International, Inc., headquartered in Wood Dale, IL, is the largest disaster restoration organization in North America. DKI member companies provide full service restoration to their customers: emergency response, water damage mitigation, mold remediation, complete reconstruction and much more, 24 hours a day, 365 days a year. DKI returns damaged property to its pre-loss condition quickly and efficiently, delivering complete satisfaction to our consumer, insurance, and corporate customers.

For more information about Disaster Kleenup International, Inc., visit our website at www.disasterkleenup.com or contact Dan Cassara at 630.350.3000 x254 or email at dcassara@disasterkleenup.com. Contact: Dan Cassara Phone: 630.350.3000 x254 Email: dcassara@disasterkleenup.com

Tags: disaster, property damage, water damage, water damage restoration, dki, advanced restoration corporation, mold remediation, reconstruction, restoration, water extraction, restoration company

Fire Extinguisher Recall Alert

Posted on Tue, Mar 17, 2009 @ 09:05 PM

The US Consumer Product Safety Commission recently released information related to Kidde Fire Extinguishers. It is imperative to review this recall information and check the fire extinguishers in your home or business.

Source: CPSC

FOR IMMEDIATE RELEASE

March 12, 2009 Release # 09-151
Firm’s Recall Hotline: (888) 345-4407CPSC Recall Hotline: (800) 638-2772CPSC Media Contact: (301) 504-7908

Kidde Recalls to Replace Fire Extinguishers Due to Failure to Operate

WASHINGTON, D.C. - The U.S. Consumer Product Safety Commission, in cooperation with the firm named below, today announced a voluntary recall of the following consumer product. Consumers should stop using recalled products immediately unless otherwise instructed.

Name of product: Kidde XL Fire Extinguishers
Units: About 167,000
Distributor: Walter Kidde Portable Equipment Inc., of Mebane, N.C.
Hazard: The pressurized cylinders in the recalled fire extinguishers could lose pressure and fail to operate. In the event of a fire, this failure could put a consumer and property at risk.
Incidents/Injuries: None reported.

Description: This recall involves the Kidde XL Fire Extinguishers with model numbers FX340SC, FX340H, FX340GW, XL5MR, FX210R, FX340SC-2, FX210W, XL2.5TCZ-4, E-340-3 and with manufacture dates between October 2007 and April 2008. “Kidde” and the model number can be found on the label on the front of the extinguisher. The manufacture year is on the bottom of the extinguisher. If your extinguisher is one of the listed model numbers and is marked with the year 07 or 08, contact Kidde to determine if you have a recalled extinguisher.

Sold at: Department, home, and hardware stores nationwide from October 2007 through April 2008 for about $35.
Manufactured in: Mexico
Remedy: Consumers should immediately inspect the pressure gauge. If it points to the red zone, contact Kidde to receive a free replacement extinguisher. If the gauge is not in the red zone, but you have questions about an extinguisher within the listed model numbers, please contact Kidde for additional information.

Consumer Contact: For additional information, contact Kidde at (888) 345-4407 between 8 a.m. and 5 p.m. ET Monday through Friday or visit the firm’s Web site at
www.Kidde.com


Advanced Restoration Corporation is a family-owned and operated full-service property damage restoration company with a combined 75 years experience in dealing with Fire Damage Restoration, Water Damage Restoration, Flood & Storm Damage, Mold Remediation, Smoke Damage Restoration and Reconstruction. We service Long Island (Nassau County, NY; Suffolk County, NY) and the New York Metro area.

When disasters strike, Advanced Restoration is ready to respond 24 hours a day, 7 days a week. You are guaranteed to speak with one of our knowledgeable, caring team members, day or night. Our immediate response to a claim/property loss helps minimize the damages to the structure, contents, and ease the sometime catastrophic effect that a disaster may have on an owner or occupants. Our company is dedicated to serving our clients with courteous and prompt service. We take the utmost pride in the craftsmanship of our work.

As certified specialists in water mitigation and fire/smoke restoration, we have the knowledge, expertise and experience to deal with all types of property damage. Our professional staff is also trained in all aspects of mold remediation and damage appraisals. Service area: Nassau County, Suffolk County and the NY Boroughs. Advanced Restoration is now a member of DKI.

Tags: disaster, property damage, fire restoration, restoration companies, water damage restoration, nassau county restoration, burn hazard, fire recall, fire prevention, advanced restoration, advanced restoration corporation, reconstruction, suffolk county restoration, emergency service, homeowner tips, restoration company, fire protection, cpsc recall

Streamlined 203 (k) Loan: Repairs/Foreclosure

Posted on Wed, Mar 11, 2009 @ 05:13 PM

Foreclosures continue to dominate the real estate market and as a result, many homes are left in disrepair. If you are contemplating the purchase of a foreclosure requiring minor repairs, you may want to consider a "Streamlined" 203(k) loan.

The Streamlined (k) Limited Repair Program was developed to augment FHA’s existing Section 203(k) rehabilitation program for less extensive repairs and improvement.


What improvements are eligible under the Streamlined 203 (k) program?
The Streamlined (k) program is intended to facilitate uncomplicated rehabilitation and/or improvements to a home for which plans, consultants, engineers and/or architects are not required.

The Streamlined (k) program includes the discretionary improvements and/or repairs shown below:

  • Repair/Replacement of roofs, gutters and downspouts
  • Repair/Replacement/upgrade of existing HVAC systems
  • Repair/Replacement/upgrade of plumbing and electrical systems
  • Repair/Replacement of flooring
  • Minor remodeling, such as kitchens, which does not involve structural repairs
  • Painting, both exterior and interior
  • Weatherization, including storm windows and doors, insulation, weather stripping, etc.
  • Purchase and installation of appliances, including free-standing ranges, refrigerators, washers/dryers, dishwashers and microwave ovens
  • Accessibility improvements for persons with disabilities
  • Lead-based paint stabilization or abatement of lead-based paint hazards
  • Repair/replace/add exterior decks, patios, porches
  • Basement finishing and remodeling, which does not involve structural repairs
  • Basement waterproofing
  • Window and door replacements and exterior wall re-siding
  • Septic system and/or well repair or replacement

What are the minimum and maximum amounts for repair costs under this program?
Given the need for homeowners to make minor repairs without exhausting personal savings, and in consideration of the increasing cost of materials, the minimum repair cost of $5,000 is eliminated and the ceiling is now raised to $35,000. This revised maximum repair/rehabilitation amount recognizes the cost of making older homes more energy efficient. When the repairs exceed $15,000, the mortgagee must perform or obtain an inspection to determine that all listed repairs were completed.

Can this program be used for repairs and improvements on purchases of HUD Homes?
Like the regular Section 203(k) program, Streamlined (k) may be used for single-family housing sold by HUD. REO properties that have been designated by FHA’s Management and Marketing contractor (M&M) as “insurable” with repair escrow ($5,000 or less in required repairs) or “uninsurable” (with more than $5,000 but no more than $35,000 in required repairs) are eligible for the Streamlined (k) program provided that the repairs qualify as eligible work items as outlined.

Advanced Restoration is a full service property damage restoration company that specializes in the rehabilitation & restoration of homes and businesses. The company is family-owned and operated with a combined 75 years experience in dealing with Fire Damage Restoration, Water Damage Restoration, Flood & Storm Damage, Mold Remediation, Smoke Damage Restoration and Reconstruction. We service Long Island (Nassau County, NY; Suffolk County, NY) and the New York Metro area.

For more information on how Advanced Restoration can partner with you, please contact Gary Matzelle at (516) 903-4107, or send an email to gmatzelle@advancedrestoration.com.
Please visit our Website: http://www.advancedrestoration.com/

Tags: disaster, foreclosure, 203(k) loan, fire restoration, water damage, mold, mortgage, advanced restoration corporation, reconstruction, disrepair, flood damage, home repair

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