What is the loan application process?
Please visit www.cedac.org/hmlp to watch a short video on the loan application process. In most cases, the Home Modification Loan Program does not refund applicants for already completed construction projects, but please speak with your Provider.

Step-One
Applications are taken anytime and reviewed on a first-come, first-served basis. To determine eligibility, your application must include all pages of the application, as well as the documents listed on the Application Checklist.

If you are unsure of the status of your application or need assistance with completing your application, contact your local provider agency. The provider can also answer any questions about the program requirements.

Step-Two
Once the provider agency has your complete application, including the Home Modification Loan Program Bid, Scope of Work and Contract Form (Bid Form) completed by your qualified contractor, a program construction monitor will schedule an inspection to review your construction project. Please see the handout, HMLP and Contractors, for more information.

Step-Three
Following the inspection, the provider agency prepares the HMLP loan documents for your review and signature. The mortgage document will be filed at a Registry of Deeds/Registry District of the Land Court or if applicable a UCC-1 Financing Statement will be filed with Massachusetts Secretary of State. The fees to record a mortgage or file the UCC-1 may be included in your loan or you may pay these fee(s) directly.

Step-Four
Once your mortgage or UCC-1 is filed, the provider agency will be able to request your loan funds which will be disbursed according to the agreed upon payment schedule between you and your qualified contractor in your construction contract. Your loan disbursement schedule can also be found in your HMLP Loan Agreement. Please note that it can take up to 4 – 6 weeks after your inspection until the first loan disbursement can be made.

It is the responsibility of your qualified contractor to secure all necessary permits from your municipality. Loan funds cannot be disbursed until a copy of these permits are submitted to your provider. If the contractor is requesting money before any work starts, the first payment can only be for construction materials and cannot be more than 1/3 of the total price of the project.

All loan disbursements are made after the homeowner submits receipts or invoices from their chosen contractor. Please note, invoices submitted directly by your contractor to your provider cannot be processed. It is the responsibility of the homeowner to verify the construction work is completed to their satisfaction and the payment milestone listed on the bid has been completed to authorize payment. Homeowners should never pre-sign invoices from their chosen contractor.

Step-Five
The construction monitor conducts a final inspection only when your project is totally finished to your satisfaction, and any municipal inspections have been conducted. The final payment (at minimum 10% of the total contract price) is released after the final HMLP inspection has been performed. The contractor must also sign a lien waiver.

What happens if my application is determined not eligible?
You will be notified by phone or in writing by the provider agency. The provider will attempt to provide you appropriate referrals to other programs or sources of funding.

What if my project will cost more than my available loan amount?
It will be your responsibility to find additional funds in order to complete your project. HMLP funds can only be used after all other sources of funding are spent on the project. Information on organizations or other programs that may have funds available can be found on our website or your provider can provide you with a handout with this information.

Who will do the actual work to modify the home?
HMLP and your provider cannot recommend contractors.
You will hire the qualified contractor of your choice to complete your project. All construction professionals hired must be licensed and insured in the state of Massachusetts and obtain the required building permits and this licensed individual should be the person who signs the legally binding construction contract. For resources on hiring a contractor visit https://www.mass.gov/info-details/homeowners-guide-to-hiring-a-home-improvement-contractor.

What should I expect during construction?
Be sure to review Step Four above regarding loan disbursements during construction. Please note, your provider is not able to negotiate or discuss the details of your project or application with your chosen qualified contractor. You should review the handout, The Home Modification Loan Program & Contractors, for more information on working with contractors and HMLP.
Homeowners are solely responsible for overseeing their chosen qualified contractor and determining when to authorize payment. You should keep a copy of your construction contract near-by and refer to it often. If something is not going the way you feel it should or if you have questions, you need to speak to your chosen contractor. You should also notify the provider, who can advise you on possible next steps you can consider.

What if I have a dispute with my contractor?
HMLP, your provider and the construction monitor cannot be involved in disputes regarding the legally binding contract you entered into with your chosen contractor. More information about hiring a construction contractor and consumer protection laws, including how to file a complaint can be found on the Massachusetts Office of Consumer Affairs and Business Regulation at: https://www.mass.gov/info-details/home-improvement-contractor-law-resources or call the state office’s toll-free hotline at (888) 283-3757.

May I do any of the work myself?
If you are a licensed contractor, you may be allowed to do the work yourself. Please be aware your loan funds can be used to pay for the cost of materials only. You will not be allowed to use loan funds to pay for the labor costs of yourself or your immediate family member(s).

What happens if I need to refinance my primary mortgage in the future?
You’ll work directly with your provider agency on the steps to request a subordination of your HMLP mortgage lien. Please be advised HMLP only approves cash-out, including HELOC subordinations in limited cases. Your provider will need to review your loan application, home's appraisal, credit report(s) to determine if HMLP will be willing to subordinate.

Is a Mortgage Protection Plan a requirement of the program?
No. Some borrowers have received notices in the mail about a mortgage protection plan after they had a mortgage, including the HMLP mortgage placed on their property. These notices are not from your provider or HMLP. You should consult an attorney, insurance agent or other trusted advisor for information on mortgage protection plans.

My home is in a Trust, am I eligible?
A Trust does not disqualify you from being eligible for an HMLP loan. Your provider will require copies of your trust documents for review by the program’s legal counsel. This review is so your provider can correctly document your loan.

I bought my home using an affordable home ownership program, am I eligible?
This does not automatically disqualify you for a HMLP loan. These home ownership programs have restrictions that require you to seek approval for any construction on your home. They often also require permission to enter a mortgage, so the resale price of your home remains affordable to the next homeowner. Please provide your provide agency copies of any affordable housing restrictions/covenants attached to your deed for review by the program’s legal counsel.