Contractor Requirements for a Renovation Home Loan

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Erik Sandstrom

Mortgage Expert - Call 1-619-379-8999
Staff member
Loan Safe Mortgage
Jan 14, 2011
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San Diego, California
www.loansreduced.com
Renovation home loan closing timeframes are heavily dependent upon the contractors meeting their requirements and delivering documents to the lender on time. Although there are in some cases exceptions to that rule, for example Home Depot, Sears, Lowes or Menards we do not need contractor approval.

For the contractors of your choice you, they will need to provide these documents:

Documents Required From Contractor:
Detailed Estimate - to ensure we will able to get a value increase from the repairs or renovations.
Contractor License
W9 - For Tax purposes
Insurance - ensure they are insured in case something was to occur
Homeowner Contactor Agreement
Permit Advisory Form
Profile Report

As long as your contractor is able to provide those items in a quick and timely manner the renovation loan will have a better chance of closing faster. Once the loan is closed you will be given checks to deliver to the people working on the renovation. If you have multiple contractors you may receive a few checks. Depending on the amount of repairs needed you may also have a HUD Counselor that will assure the process moves along smoothly. If not the Draw department of who you decide to do the loan will get on the contractors to make sure they also perform work on time.

It's also important that you have a loan officer and company that is educated with these programs to determine which one is best for you and your family. There are many programs like the FHA 203K, Pool Escrow, Buyer/Seller Funded, Fannie Mae HomeStyle, Jumbo Renovation and more.

If you would like to know more about different options please don't hesitate to reach out to myself here at LoanSafe or at [email protected] 619-379-8999.
 
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