Fha 203k Homeowner/contractor Agreement Addendum

Transcript

FHA 203K HOMEOWNER/CONTRACTOR AGREEMENT ADDENDUM Contractor Information: Borrower’s Name(s) Property Address FHA Case # This form must be completed in conjunction with the Homeowner / Contractor agreement that is provided by each contractor being paid through the FHA 203k rehab escrow account. All parties expressly agree and acknowledge: 1. The program requires payments to the Contractor will be made in no more than two (2) installments. No additional draws will be allowed before the initial draw, before the final draw or after the final draw. 2. The initial draw will be fifty percent (50%) of the total bid amount, which will be paid at closing, and it and is to be used towards material and labor specifically for contracted work at above referenced property. 3. The final draw will be the remaining fifty percent (50%) of the total bid amount and will be paid when all work has been completed on the subject property, which may be a later date than the completion date on the specific bid between the Contractor and Borrower. Primary Capital Mortgage will obtain a final inspection representing the completion of all repairs as agreed upon by the Borrower and Lender, which may include additional bids from other contractors. The final inspection does not warrant or insure the quality of work completed by any contractor and is for the express purposes of the lender to determine completion for draw disbursement. 4. Revised bids, specifically outlining any cost overages, must be provided prior to the final draw for disbursement of any contingency funds. All additional work must be approved by Primary Capital Mortgage and must be inspected. 5. Work will commence within 30 days of loan closing. 6. Borrower will not be displaced from subject property for more than a 30 day period of time due to construction. 7. All work will be completed within six (6) months of loan closing. 8. We hereby certify that there is not a “Non-Arms Length” relationship between any borrower on this loan transaction and the contractor identified below. Contractor Name Signature License # Date Borrower Name Signature Date Co-Borrower Name Signature Date Primary Capital Mortgage, LLC FHA 203K Homeowner/Contractor Agreement Addendum June 2014