What is a Consumer Renovation Program (CRP)?
The two most popular are FHA203K and Fannie Mae Home Style. They are the primary government programs for the rehabilitation of single family homes and an important tool for community and neighborhood revitalization
Way too many home owners in Chicagoland and throughout the US, have homes that have little to no equity and/or are in need of major repair. According to the US Census Bureau over 40% of homes we built before 1969. Home owners would seek financial assistance from a lender, but would be denied for a number of reasons. Right at the top would be their “equity” position (the difference between the home's fair market value and what they owe on their mortgage). Many homeowners are upside down, meaning they owe more than the property is worth. They are stuck.
Most have not heard of Consumer Renovation Programs, like FHA203K and Fannie Mae's HomeStyle. Loans like these are the only loan programs that do not look the current value of the home but future value based on repairs and/or improvements that will be made.
There programs are now new, they have been around for decades. For years many lenders offered this programs in a way that have made it difficult for the consumer. Before these programs grew in popularity, way too many did not have a good experience and gave these programs a bad reputation. But with the advent of the foreclosure market many lenders to meet the demand got much better and had to create departments solely focused the CRP's. Still the focus over the years has been the purchase market. So unless you walked into a home that needed work with your realtor who would at that moment tell you about CRP's how would you ever hear about them. Shore Partners is taking thiese programs to the existing home owner. Home owners are the largest market of consumers and who need it the most. In so doing Shore Partners has taken it to the next level and made it easier for the homeowner by ensuring all parties involved in the renovation have a better idea as to how to service homeowners. Finally we have introduced the missing link - ASID designers. Designers are the key to a good experience with a CRP.
CRP's ARE SAFE
There are many reasons CRP's are safe but the big ones are the Contractor is not given any money to start a whole home renovation CRP project, must pull permits and work has to be signed off by the funding banks contractor prior to receiving any money for work completed.