[StBernard] Road Home

[Westley Annis]

Westley,

How do you register with the Road Home Program for rental property?  I did
it online for my home but it wouldn't let me for rental property we own.  I
tried calling the Road Home phone number and the automated lady told me that
it was only for owner occupied homes.  We would like to be considered for
this to fix up and rent our rentals.  Thanks.

Laurie


>Wendy,

>

>Lucky for you, the Road Home program, should work out well for you (at 

>least it is in my mind, I still need to run the numbers further below 

>to make sure...cross your fingers).

>

>The main goal behind the Road Home program is to encourage people to 

>rebuild or repair their homes, which is what you are doing, so you will 

>see the most benefit.

>

>Let's look at some numbers.

>

>1) Value of home Pre-Katrina - Let's say $150,000

>2) Percent of damage - 90%

>3) Cost of damage = $135,000

>4) Insurance & FEMA Aid Received = $102,000

>5) Uninsured damages = $ 33,000

>

>Using these numbers, you should be eligible for a grant of $33,000.  If 

>this isn't enough, then you should be eligible for a loan of $102,000.

>

>The Road Home loan program will work differently than the SBA.  First, 

>I think it is zero interest.  Second, it is being called a "silent 

>loan", which means no payments are due until you sell the house, at 

>which point the whole thing is due.  I know they are doing this for 

>rental stock, but I'm not sure about owner-occupied.

>

>The two things you will need to do is get your pre-Katrina value as 

>high as possible and your percent of damage as high as possible since 

>these will be the limiting factors on how much you could receive.

>

>Westley

>