What to Expect During this Process

Are you interested?
Call: 877.515.0575
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Web: www.restorerepairrenew.org 

Clarifi Flyer (English/Spanish)
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Loan Program Checklist

We will determine your initial eligibility during a phone call:

  • Is the house that you want to use the loan to repair your primary residence?
  • Have you lived in the house for 6 months or more?
  • Is your name or a household member’s name on the deed to the property?
  • Do you currently have homeowner’s insurance on the same house? Are you current on your property taxes or in a payment plan?
  • Do you have a credit score of 580 or above?
  • Is your household size under the income maximum?
  • Do you have more than one loan secured on your property? 

If you are eligible, we will complete the intake process via phone:

Be prepared to provide the following information: 

  • Names, dates of birth of all household members, your home address and contact information
  • Financial information for all borrowers. to determine the monthly gross income as well as debt payments for all household members. At least one borrower must be on the deed to the property and occupy the home as their primary residence.

Please note: A soft pull on your credit score will be completed through Equifax by using your social security number. 


  • Credit score
  • Property requirements include questions about any open L&I violations, tangled title issue etc.

 

Scenario 1: You are denied to participate in Restore Repair Renew (RRR)

  • Denials are generally temporary and we work with homeowners with program eligibility by helping them meet the PRA and the lender’s criteria.
  • An action plan is developed to address denial issues and help you reach program eligibility.
  • Repeat the intake process once you have completed your action plan goals. 

Scenario 2: You are approved to participate in Restore Repair Renew (RRR)

Your RRR representative will send you an Authorization to Release Information Form as well as a Household Size Affidavit. You will need to complete both and send them back to us plus one proof of income verification (paystubs, benefit award letter, tax return, w-2’s, etc.) and any other documents as needed depending on your individual situation.

 

Loan Application Process:

  • After we receive your documentation, your RRR representative will give you a list of documents needed to apply for the RRR loan.  For example: 

- Title of the property
- Proof of all income
- Proof of insurance
- Proof of all current debts
- Verification of property taxes

  • Call an approved lender (from our list) after you have secured all your paperwork. At your appointment, the lender will give you more information about the loan application process, review your paperwork and will issue a decision on your pre-qualification. 

If you are denied by the lender, feel free to call your RRR representative to discuss why and what options are available to you. 

If you are pre-approved by the lender, congratulations!


 

Home Assessment and Scope of Work:

  • Call your RRR representative to schedule a home assessment. 
  • The RRR representative will conduct a thorough interior and exterior home assessment and a minimum home quality standards checklist including but not limited to:

- Functionality of bathroom(s)
- Functionality of kitchen(s) and appliances
- Electrical system
- Plumbing system
- Roof
- Heater
- Hot water heater
- Structure
- Windows, doors
- Smoke detectors

  • Issues listed on the minimum home quality standards checklist will need to be addressed first in the contractor’s scope of work. The lenders won’t approve estimates that don’t address issues in the minimum home quality standards checklist.  
  • Once the minimum home quality standards have been satisfied, homeowners can spend the loan funds on any home repair/renovation project they choose within their budget. 
  • You and your RRR representative will prioritize the repair/renovation projects based on need and budget. This will become the scope of work that you will present to contractors when they come to your home to give you estimates.

Call Contractors to Get Estimates:

  • Call contractors and ask them to give you estimates for the scope of work discussed. Only work with contractors that have a current Philadelphia Trade License or PA Attorney General’s Office registration. We have a list of contractors that are willing to work with homeowners involved in our program. However, we do not vouch for any of the contractors’ competency or character. 
  • Get 2-3 estimates on the same scope of work to determine the best pricing, warranties, reputations, etc. In addition, it is important to ask the contractor(s) what permits, if any, are required to complete your scope of work. 
  • Include the list of items that absolutely need to be a part of the contractor’s estimate(s) before you can submit them to the lender. We will provide this list for you to share with your contractor.
  • Discuss payment schedule upfront with the contractor - they can receive up to 30% as a deposit and will be paid the remaining balance upon completion of the work. 

PLEASE NOTE: The lenders are willing to make payments to up to three separate contractors. For a scope of work that requires multiple trades (electrical, plumbing, masonry, HVAC, carpentry, roofing, etc.) it may be in your best interest to reach out to a general contractor who can consolidate all of the trades into one estimate and one payment from the lender.  

Contractor Selection and Estimate Submission:

  • Submit the estimate of the contractor you select to your RRR representative for review. Your RRR representative will guide you and your contractor on what is missing to meet all requirements of the estimate. The RRR representative will verify the estimate and submit the scope of work to the lender for review.

Loan Closing and Construction Period

  • If the lender approves the estimate and scope of work, they will schedule a loan closing appointment. Make sure to follow any other instructions for the loan closing appointment. 
  • Once your loan closes, you can schedule the work with your contractors. You will have 60 days from the date the loan closes for the contractor(s) to complete the work. During the construction period, the lenders may ask you to make interest payments on the loan.
  • Once the work is completed, you or the contractor will submit a final draw request with the lender for the remaining balance to be paid. The contractor(s) will submit a final invoice to the lender that can include any change orders which have been previously approved by you.
  • The lender will send an inspector to verify that the work listed in the scope of work was completed. 
  • The lender will write a check to the contractor(s). You will need to sign the check as a final approval of the work that was completed and provide it to the contractor(s). 

Loan Repayment

  • After the project is completed, the outstanding balance will be termed out for the remainder of the 10 year (120 month) term. For example, after a construction period of 60 days (2 months), the outstanding balance will be termed out over 9 years and 10 months (118 months).  
  • The lender will send you a payment schedule for the remainder term. Make sure you follow the payment schedule.

  


Your RRR representative is available by phone or email to answer questions and help troubleshoot as needed during this process. Feel free to reach out with any questions or if you need any support.

 

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