So what can you do when Citizens either wants to a) increase your premium exorbitantly, or in the worst case b) cancel your homeowner’s insurance policy?
2) You can replace your roof and hurricane strapping and other wind mitigating, structural components and remodel accordingly; AND install impact windows and doors or hurricane shutters and door protections all around your home.
So, how can you pay for this?
The increased premiums, if you don’t remodel, are not financeable. So let’s hope you’ve saved a lot of money. Sure you’ll pay it monthly to your escrow account, however that’s only over 10-12 months and your mortgage payment may go up to “shock level”, becoming unaffordable, leading to default.
Fortunately there may be a solution if:
FHA 203-K Refinancing: Allows you to finance your upgrades and remodeling into one, long term 30-Yr fixed rate mortgage. In most cases, an Owner-Occupied property (1-4 units) can be refinanced up to 96.5% (or more, maybe up to 110%) of the Rehab Value. Include your new roof, shutters, windows & doors and anything else … kitchen & bathrooms for example … that can be accommodated. The Rehab can also include cosmetic updates. AND the benefits to you the homeowner are many … 1) You will have a better, more valuable home; 2) You will qualify for and get the best possible insurance rates and maybe even be able to get away from Citizens; 3) Your new mortgage could be an asset to your property in a future re-sale … Did you know that an FHA loan is the ONLY Assumable, Fixed Rate mortgage product on the market since the 1980s? As long as your buyer (the new borrower) qualifies to assume your loan, you get released from liability on the loan at time of sale…!!! And when next do you think there’ll be 30-yr fixed rate mortgages around 4% or less?
Conventional Conforming Rehab Refinancing: If you don’t want FHA (for whatever unknown, ill-advised reason) there are lenders doing similar, Rehab/Refinance, Conventional mortgages up to 95% Owner-Occupied; AND YES … 75% - 80% on Investor or Second Home properties, 1-4 units.
If you’d like more information on this article and its contents please feel free to contact the author and he will be able to refer you to his team of real estate lending professionals that can also help you.
Thank you, Steven C. Epstein, P.A. - Accelerated Realty, Inc. - 6796 SW 62nd Ave., South Miami, FL 33143 - Office: 305-328-9524 Ext. 103 – Fax: 305-459-1802 – Cell/Text: 305-546-5132 - Email firstname.lastname@example.org
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