The Home Modification Loan Program does not reimburse for completed construction projects. Applications are accepted anytime and applicants are served on a first-come first-served basis. Applications are reviewed by the regional Provider Agency to determine eligibility. The application includes an Application Checklist, please be sure to include all items on this Checklist so your loan can be processed efficiently. Your loan application cannot move forward without all items included on this checklist. Please contact your regional provider agency if you are unsure of the status of your application of if you have any questions regarding the program requirements.
Once the Provider Agency has received a complete, signed application with all of the required documentation, including the Home Modification Loan Program Bid, Scope of Work and Contract Form (Bid Form), filled out by your chosen contractor, a program construction monitor will come to the home and perform an initial inspection. Once the provider agency has the inspection report they will draw up the loan documents for signature and will then record the mortgage at a Registry of Deeds/Registry District of the Land Court.
Please note, the Registry charges a fee to record a mortgage (or any other documents such as Certificate of Trustee or Change of Name Affidavit that may be necessary). This cost is the borrower’s responsibility. The borrower may wrap these fees into their loan or pay these fee(s) up front.
Once the mortgage is recorded, the provider agency will be able to request funds from its funding source, CEDAC. Once the provider agency has received the loan funds from CEDAC, funds may be disbursed as anticipated by the agreed upon loan disbursement schedule attached to your Loan Agreement. Please note that it can take up to 4 – 6 weeks until the first disbursement can be made.
Loans are disbursed in increments throughout the modification project. An initial disbursement of no more than 1/3 of the loan can be made to allow contractors to start work, please be aware labor costs cannot be included in an initial up-front disbursement. Subsequent disbursements are made after the homeowner submits contractor receipts or invoices showing a given percentage of work has been completed. It is the responsibility of the homeowner to verify the work completed was done to their satisfaction prior paying an invoice.
A final inspection will be conducted by the construction monitor at project completion. The final payment (10% of the total loan amount) will not be released to you or the contractor until the final inspection has been performed, the contractor signs a lien waiver and you have indicated your satisfaction with the modifications.