What’s so easy about an EZ “C”onventinal Repair Escrow or in layperson’s terms, a home repair loan? This escrow product makes it simple to finance small upgrades on a newly purchased home over a short period of time. This escrow also can take it easy on your bank account, avoiding duplicate and higher fees common to multiple transactions and multiple loans.
During the home buying process, an appraiser will write down a list of needed fixes before a home can be purchased, or you will come up a list of your own. An EZ “C”onventional Repair Escrow gives you an easy way to get a home repair loan and make these improvements without relying only on your savings.
With an EZ “C”onventional Repair Escrow, the lender rolls the money to finance the house and complete repairs into a single home loan. The appropriate funds go to pay for the house. The fix-it funds are held in an escrow account in the trust of the lender. After both sides agree to a contractor, the improvements are made and the lender handles the payments.
Some other things to keep in mind:
- You can also use a home repair loan to make it easier for the seller to make repairs. Instead of lowering the selling price, at closing the seller can set up a repair escrow with funds from the sale.
- For homes that need a lot of work to come up to market standards, the lender will sometimes make loan approval contingent upon the buyer setting up a repair escrow at closing.
- If the borrower funds the repair escrow, then any excess funds can be returned to the borrower. If the seller funded it, then any extra funds must be used to pay down the principal balance of the mortgage.
Not all EZ “C”onventional Repair Escrow activity comes from necessary repairs. If you would like to make cosmetic changes—maybe improve a bathroom or outfit the kitchen with new cabinets—an EZ Escrow home repair loan would help you make those improvements and renovations. The changes can only be cosmetic—no structural improvements are allowed. They also must be attached to the property and add value.
The program is designed to handle smaller improvements, renovations and repairs that can be fixed in 60 days or less. The cap for costs is $35,000 or 10% of the improved value. To get started, you will only need to provide 5% of the combined value.
Contact Jeff Berman “The Mortgage Go To Guy”, at 214-989-7700 or complete the form below, to see if you qualify to use an EZ “C”onventional Repair Escrow as a home repair loan to help achieve the home of your dreams.