This new loan program is called Restore, Repair, Renew and has more flexible lending standards and a lower interest rate than traditional loans. The projected interest rate is three percent with a payment period of ten years. Borrowers with lower credit scores will be accepted and they may borrow up to $25,000.
Philadelphia is one of the nation’s oldest cities and the housing stock is beginning to show its age. Approximately 50% of the city’s houses were built before 1945, which means about half the houses are 74 years old or older. Investor groups and home buyers in Philadelphia often buy older houses and remodel them for a profit.
“This loan program can be a huge help to older home owners that have fallen behind in their home maintenance. We are contacted every week by homeowners who tell us ‘I need to sell my home‘ because they cannot afford the repairs in one lump sum. But most of them can afford a monthly repayment plan,” commented Mr. Campbell. According to statistics provided by the Federal Reserve Bank of Philadelphia only 25% of low income and middle income applicants for home improvement loans were approved during a recent three year period.
The types of home repairs or renovations include all of the major systems of a home – foundation, roof, HVAC, plumbing. Other home renovations are also permitted such as lead paint removal and window replacement. Borrowers must work with contractors that have been licensed by the city.
The program is only available to homeowners that use their house as a primary residence and are current with all real estate property taxes. Should a homeowner accept a loan and fail to make timely repayments he or she could face a home foreclosure from the city.
Dr Cash Home Buyers
100 N 18th St Suite 300, Philadelphia, PA 19103