Home Repair Loan Project Process

The following describes the typical flow of a Home Repair Loan project after the borrower’s application has been approved. If you would like to request an application, visit this page.

1. Commitment letter

If the applicant is eligible, and funds are available, then PHB will send out a commitment letter for the applicant to sign and return.

The housing loan coordinator requests a report from the title company regarding any liens and/or judgments on the property. The housing loan coordinator reviews the report and confirms loan eligibility.

2. Home assessment and contractor bids

The PHB construction coordinator will schedule an appointment with the borrower at their home to complete a home assessment. The construction coordinator will discuss with the borrower the critical repair needs and finalize the work to be done.

The construction coordinator will assist the borrower to obtain bids from licensed, bonded and insured contractors who are Lead-Based Paint Renovator certified for the repair work. Then the borrower chooses a contractor and signs a construction agreement between the contractor and the borrower.

3. Final loan determination 

Based upon the scope of work, the construction coordinator establishes the final loan amount.

4. Funding the loan and completion of repairs

Closing documents signing: The housing loan coordinator schedules an appointment with the borrower to sign the loan closing documents.

Funding the loan: PHB puts the home repair funds into an escrow account. The borrower and contractor then receive a “notice to proceed” letter, and the borrower contacts the contractor to schedule the repair work.

Completion of repairs: Once the contractor finishes the work, the borrower and the PHB construction coordinator must approve the work. The borrower then completes a loan disbursement form and provides it to the construction coordinator so that the contractor can be paid.

Also see: Project Forms and Documents