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April 7, 2016 • Real Estate

Boynton Beach Rehabilitation After Hurricane Damage

There’s an often overlooked aspect of living in an area where hurricanes are a natural occurrence, especially when that area is also hot and humid.  Hurricane damage to roofs is one of the biggest by-products of sea-borne storms in Boynton Beach – real estate agents who can effectively provide solutions for this problem can sell damaged properties more readily.

While it’s arguable that the most hurricane resistant house would be a square reinforced concrete bunker with thick walls and roof, few windows, and no overhangs, this model is unrealistic. Wooden houses, however, with traditional shingle roof construction and eave overhang, are susceptible to major damage even in what could be termed a “milder” storm coming off the coast.

After Hurricane Andrew swept through, the state of Florida adopted a stringent hurricane code. Its stringent requirements are designed to take into account not only wind speeds, but lateral and uplift wind loads and the durability and state of materials in the existing roof. Storm surge is most critical along the coastline, and roofs must withstand not only wind buffets and potential waves, but airborne water loads as well. Insuring homes that are deemed to have insufficient roof construction to meet the standards set for the area can be difficult. Without adequate insurance, mortgage holders may be reluctant to work with buyers and sellers. How do you effectively market a home with insufficient roof construction? An FHA 203K rehabilitation loan as part of the deal can give Boynton Beach real estate agents an attractive deal to show to both clients and Lenders.

HUD FHA Lender List

Eligibility of rehabilitation loans for Boynton Beach Real Estate Agents should investigate whether or not a property and potential buyer meet the eligibility requirements for a rehabilitation loan to make the property eligible for insurance under section 203(k) of the National Housing Act.

To simplify, the term rehabilitation loan generally refers to a loan made for the purpose of financing the rehabilitation of an existing residential property, for rehabilitation and refinancing of such a property, or the rehabilitation and purchase of such a property. Improvements can include the required improvements designed to meet cost-effective energy conservation standards, accessibility to the handicapped, or repairs of structural damage. The property must meet standards once rehabilitation is complete.

When the property is to be used as a primary residence, these loans are easier to obtain. Loans are also more readily available when the property is located in an area which is subject to a community sponsored program of concentrated redevelopment or revitalization. A rehabilitation loan can be junior to a first mortgage.

This option may give Boynton Beach real estate agents a better chance at brokering the sale of distressed properties.

See Our Location Spotlight: Boynton Beach, Florida

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