Foreclosure prevention services

HomeSave Repair Loans

To begin the application process, the homeowner meets with AHP Housing Counseling staff to complete a loan application and provide a description of work to be completed with estimates. The loan application interview will include a review of a credit report and a budget to confirm the affordability of the home repair loan.

Once a loan application file has been completed, and if the homeowner meets credit and affordability guidelines, the following steps are taken:

1. Title Search ordered.  The application may be placed on hold until title issues, if any, are resolved.

2. The Troy Architectural Program (TAP) or another approved inspector will inspect the property, confirm the scope of work and cost estimates and provide advice to the homeowner.

3. Appraiser evaluates property value. The Partnership may be able to use a recent appraisal if available. 

Once these inspections and reviews have been completed, the loan committee will review the entire loan application.  If the loan is approved, the following steps will occur:

1. The homeowner must finalize costs with their contractor and sign the construction contract.  Homeowner must obtain contractor’s insurance information.

2. Prior to closing, homeowner attends post purchase workshop offered by a counseling partner.  Topics include taxes, insurance, home maintenance, working with a contractor, predatory lending, delinquency prevention.

3. The homeowner attends a loan closing.  Funds are generally advanced from the loan after work has begun and the contractor asks to be reimbursed for work completed.  During construction, TAP or approved inspector will inspect work and confirm quality of work and reasonableness of disbursement request.  Checks are issued in the name of the homeowner and the contractor.