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FirstHomes100+: Step by Step Guide
FirstHomes100+ is an innovative way for you to take advantage of some of the real estate purchase opportunities that are available today, with the security of knowing that you will have the money needed to make repairs or improvements to the home and the benefit of expert assistance every step of the way.
Each FirstHomes100+ customer benefits from a consultant approved by the U.S. Department of Housing and Urban Development (HUD). Your consultant’s job is to help you make sound decisions about the work you plan to do, as well as to ensure that your interests and investment are fully protected.
Here’s how it works:
Step 1: Apply for and secure pre-approval for our FirstHomes100
mortgage.
This will help you determine your total spending limit, including any repairs or improvements.
Step 2: Shop for a home.
Once you have been pre-approved for a FirstHomes100
mortgage and find a home that you are interested in purchasing, you will move ahead with a purchase and sale agreement. Your agreement should include a contingency that the sale is subject to a complete home inspection.
Step 3: Get the home inspected.
A professional home inspection will identify any problems with the home and necessary repairs to make the home safe and ready for you and your family to live in. If the home needs repair, your FirstHomes100
loan will become a FirstHomes100+
package, which will cover the initial mortgage as well as the money to complete repairs or improvements after the closing, all together in one fixed-rate 30-year loan.
Step 4: Seek estimates and work with your HUD consultant.
Once the inspection is complete and $5,000 or more in repairs are identified, you will then work with a HUD consultant to determine what repairs and changes you would like to make.
These changes will include addressing any problems identified by the inspector (i.e. roofing, plumbing, heating, etc.), as well as any other home improvements you would like to make (i.e. kitchen or bathroom remodeling). Your HUD consultant will then provide you with a 35-category scope of work plan for all the repairs.
Step 5: Protecting you and your investment.
Once you receive the HUD consultant’s plan, you will need to select a Rhode Island licensed contractor. The contractor will prepare a contract with costs for scope of work. Your HUD consultant will review the costs and contract to ensure that there are contingencies to protect you in the event of unexpected cost overruns. The consultant will also be involved throughout the renovations to ensure the work is completed on time and correctly.
You should gather several proposals in order to find a contractor with whom you and your consultant feel comfortable. You are responsible for paying for the cost of the HUD consultant. In most cases, the cost ranges from $400 - $1,200. If approved, this cost can be rolled into your FirstHomes100+ mortgage.
Step 6: Work with your loan counselor to finalize your FirstHomes100+ loan package.
Step 7: Once your loan is approved, schedule your closing and repairs. After the closing, work with your HUD consultant to ensure all renovations are completed on schedule and are done properly.
Step 8: Enjoy your new home knowing it is safe and in move-in condition!
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