By Dave Murnen and Pat Beaty
It’s human nature to think the grass is always greener on the other side of the fence.
That can be true with looking for a new house. It’s a great time to buy a home on the Harbor right now, with the area’s relatively reasonable prices and low interest rates.
However, with just a little investment and creativity, the house you’re in could become your dream house.
Here at NeighborWorks of Grays Harbor, we offer affordable loans to qualified homeowners. Our loans include construction management and contractor oversight.
There are plenty of wonderful older homes throughout the state whose effective age, like our own, is determined by the quality of timely maintenance afforded.
Not only does a repaired or updated home make life more pleasant over time, it can increase the desirability of the area by adding to an improved housing inventory in general.
LOANS FOR REPAIRS
At NeighborWorks, we’re all about encouraging sustainable homeownership through education and housing counseling, as well as home maintenance and repair loans.
Our revolving loan fund has many specific purposes. Funding for home maintenance and repair is what we want to talk about today.
The fund is composed of restricted capital lending funds awarded over the past 35 years. The money originated from several sources in partnerships with the cities and county, as well as restricted capital funds from our parent corporation, NeighborWorks America.
We loan the money out at time and interest rates that are made affordable for the individual homeowner. As the loans are paid back, the money goes right back into the revolving loan fund and becomes available for another rehab project — sort of the ultimate recycling project.
A rehabilitation loan is intended to make owner-occupied homes safer and more livable, better-looking and more maintenance-friendly.
For some folks that means a new roof, siding and paint, weatherization, or perhaps a heat pump or new foundation. For others, it could mean updated wiring or plumbing, or sometimes even adding a new bathroom or bedroom. For many folks it may be the only source of funds they will qualify for to fix their home.
Besides the affordable loan terms, what many people especially appreciate about our rehab loan is that it includes construction management oversight. We are your expert and advocate in every phase of the project.
Everything here begins in a confidential meeting with our housing counselor, which will establish your qualifications for the loan program.
If you qualify, a short, general inspection of the home is next. This is done by our construction manager to see what the issues are and to estimate the cost to make repairs. The counselor and the construction manager bring all this information to the loan committee for a final decision.
If the loan is made, the work to be done is put into writing and put out to bid. You select the winning bid and contractor from our contractor pool, then everyone signs a contract and the work begins.
Our job is to oversee the work, help determine solutions and costs to any unforeseen problems, check permits, make sure the work is completed to specifications, have lien waivers signed and have inspections completed before you sign off on each contractor’s pay request.
As your expert, we are available to make sure every part of your project is complete.
On the flipside, the local contractors like to work with us because they know the written work scope is clear, that we allow change orders for hidden damages and that they will be paid as promised.
Besides you being much happier, we also like the bonus that your rehab project generates permit fees, involves the purchase of materials and the hiring of local contractors — all helpful to our local economy while enhancing the community at large.
ARE YOU ELIGIBLE?
Eligibility cannot be determined over the phone. Generally, our rehab loan program is available to homeowners in Grays Harbor County who live in the home needing rehabilitation. Income is restricted to 50 to 120 percent of the median income for this area. Call us for this and more information.
To be eligible, at minimum, homeowners must have a steady income, qualified equity in their home as security and no open collections. Other factors may be considered as required by the loan committee to secure the loan.
Construction season is upon us, so this is the time to get going on the planning and financing of your project.
HOMEOWNER EDUCATION
Buying a house? We may have 100 percent of the funding you need. Get educated online at HomeSage.org. We will be there as your personal housing adviser.
Dave Murnen and Pat Beaty are construction specialists at NeighborWorks of Grays Harbor County, where Murnen is executive director. This is a nonprofit organization committed to creating safe and affordable housing for all residents of Grays Harbor County. For questions about home repair, renting, remodeling or buying, call 360-533-7828 or visit 710 E. Market St. in Aberdeen.
