Financing and Warranty Options

Financing Options

Same-As-Cash - 3, 6, or 12 month options for most eligible home improvements.

• Loan amounts - $1K to $45K on approved credit.
• No payments, no interest if paid in full during the 3, 6 or 12 month period.
• Payments deferred for length of loan - 3, 6 or 12 month period.

~ OR ~

203k Home Loan Program - (by Silvertree) Paul Lesieur - 203k Loan Consultant

Where can I get the funds to repair my home?
Leaky windows, roof shingles missing, kitchen or bath looking sad and tired? Maybe your house needs to be remodeled for an aging parent that is moving in, or you know that there is no way that it can make it though another winter or summer comfortably.

Unfortunately, you might not have enough in your savings or checking account to cover the cost of improvements or maybe you wish to hold onto that money and go with an option that might help lower your taxes. Look below and learn about a government backed loan program called a 203(k) along with some standard loan options.

There are ways to get the money you need to improve your living space.

203k Loan program from FHA
The Federal Housing Administration (FHA), which is part of the Department of Housing and Urban Development (HUD), administers various single family mortgage insurance programs. The Section 203(k) program is the Department's primary program for the rehabilitation and repair of single family properties. While this program fell out of favor during the housing boom with other loans not requiring inspections, it has gained traction again as one of the few types of loans that can still be gotten for repairs.

How the Program Can Be Used
This program can be used to accomplish rehabilitation and/or improvement of an existing one-to-four unit dwelling in one of three ways: To purchase a dwelling and the land on which the dwelling is located and rehabilitate it. To purchase a dwelling on another site, move it onto a new foundation on the mortgaged property and rehabilitate it. To refinance existing liens secured against the subject property and rehabilitate such a dwelling.

Eligible Improvements (Normal Version)
There are plenty of eligible improvements allowed on 203K loans like: Bathroom remodels, Kitchen remodels with new appliances, Making a house handicap accessible, Whole house renovations & remodeling, Finishing the basement, New deck &/or patio, Flooring Replacement, New doors and windows, Upgrading the HVAC system, Additions, Roofing, Painting, Upgrading the plumbing &/or electrical, Energy efficient improvements, Wells and septic tank repair and upgrades.

Section 203(k) Streamlined Program
The maximum repair amount allowed is $35,000 with no minimum amount that can be taken for repairs. The funds will be escrowed at closing and released as the work is completed. However, the following items are not allowed under this program; complete house remodeling, new construction, structural issues or changes, & landscaping. All work must be able to be completed within three months and must start within 30 days of closing.

So What's The Catch?
The program did fall out of favor during the housing boom due to the fact that inspections are required & minimum standards had to be met. The FHA requires that all doors and windows have adequate weather stripping; cracks, or joints in the building must be sealed to reduce air infiltration; all openings in exterior walls where the cavity has been exposed as a result of the rehabilitation be insulated; ceiling areas must be insulated where necessary; attic and crawl space areas must be adequately ventilated; each sleeping area must be provided with at least one approved smoke detector; HVAC systems if replaced must be sized properly & insulated; work performed must conform with all state & local building codes.

Warranty Info

Warranty Claims - How to: Notify Tomco Company as soon as you notice that you have an issue in writing. We will inspect and notify the correct supplier and or vendor so that they can follow through with the warrantee repairs. We offer this service to keep tabs on products that we specify, so as to offer quality products to our future clients.

Contacting License - Tomco Company Inc. is very proud to hold an original Minnesota Contractors License and to be in operation without a claim for 30 years! Tomco Company Inc. has an original 4-digit license number (#8747), meaning we have the experience and have been able to maintain all the qualifications to meet the standards of the State of Minnesota (Dept of Labor and Industry) requirements for insurance and licensing. Today most contractors and remodeling companies are issued an 8-digit number.

Insurance - Tomco Company Inc. is licensed and insured according to the rules and regulations of the State of Minnesota, Department of Commerce under Contractor License #8747. As you, the owner, agrees that you have and will maintain reasonably sufficient replacement value homeowner's/property and owner's liability insurance on the property (including improvements described in Contract) throughout the performance of the Contract, prior to commencement of construction., the owner will list Tomco Company Inc. as loss-payee on the Owner's hazard insurance policy, or purchase separate insurance to protect Tomco's interests. Tomco Company Inc. will carry, as our own expense, workers' compensation and public liability insurance as required by statute.

General Contract Notes and Conditions

Change Order Policy - All changes to the scope of the project, or written specifications, can be accomplished only by approving all material and physical changes, the additional labor, reasonable markups, and to list total price changes that go along with them, plus any administrative and management fees that might be incurred in a written form labeled "Change Order". All Change orders will be numbered sequentially and must be signed as approved or project will cease to continue. Per Minnesota Rule 2891.0030 . Four types listed below.

Type I - (Homeowner "requested changes" to the general scope of the project.) Any "requested changes" by the homeowners, after the contract signing and final plans have been approved, is subject to a change order. This type of change order is subject to the net cost of changes (both materials and labor) required to complete the change, plus a markup of 1.35 x these costs. Tomco Company Inc. additionally will charge a $125.00 administration fee plus any additional contractor management time and/or estimating time at $50.00 per hour. The administration fee is to cover the contractor cost to issue and gain approval for the change order. This administration fee will be applied per change order, not per change, so a number of changes can be dealt with in one change order.

Type II - (Allowance Changes) A change in allowance occurs when the client selects products that cost more or less than the allowance amount included in the Base Contract. For example, the Base Contract has an allowance of $7,000.00 for kitchen appliances and the client then picks out appliances that cost $8,000.00. In this instance, the difference of $1,000.00 plus a markup of 1.35 x these costs. Tomco Company Inc. additionally will charge a $125.00 administration fee plus any additional contractor management time and/or estimating time at $50.00 per hour. The administration fee is to cover the contractor cost to issue and gain approval for the change order. This administration fee will be applied per change order, not per change, so a number of changes can be dealt with in one change order.

Type III - (Dictated) A dictated change order occurs when an unforeseen change, such as a city code or an inspector's request dictates that a change be made to the project. In other cases dictated changes can happen because we are not able to see what structural defects, electrical, plumbing or mechanical conditions are like inside the walls, floors, or ceilings. Also poor soil type for proper foundation bearing, contaminated soils, and unforeseen obstructions in the ground can dictate a change order. Any hidden pre-existing condition(s) that have not been identified or addressed prior to acceptance of this contract, but became evident during the course of the project, involving additional materials and or labor are subject to contractual adjustments (change orders). This type of change order is subject to the net cost of changes (both materials and labor) required plus a markup of 1.35 x these costs. Tomco Company Inc. additionally will charge a $125.00 administration fee plus any additional contractor management time and/or estimating time at $50.00 per hour. The administration fee is to cover the contractor cost to issue and gain approval for the change order. This administration fee will be applied per change order, not per change, so a number of changes can be dealt with in one change order.

Type IV - (Interpretive) An interpretive change order usually occurs when a misunderstanding or a miscommunication happens. We intend to make every effort to include every one of your wishes into the process of estimating and contract writing, but occasionally some items or details can be in advertently forgotten or left out of the contract scope of work. The price only for the materials and labor plus additional contractor management and/or estimating time at ($50 per hour) will be included in this type of change order.

Payment Terms For All Change Orders - All change orders must be approved and signed by a minimum of one owner. All approved change orders affect the total price of the project and become a part of the Base Contract. All increases in Contract amounts will be billed immediately and must be paid within 5 working days or work may cease.

Materials - We reserve the right to replace any "specified item" with an "equal" item, if product availability is an issue or the replacement of such item will enhance the construction schedule. This "equal" item must meet the owners approval and will be ordered and installed only after a change order has been issued and signed.

Upgrade Smoke Detection - Since 1992 a state law went into effect that required smoke detectors to be installed in all bedrooms, one in the hallway outside of the bedrooms, and one installed on each level. In remodeling situations we need to install a hard wired unit in all open stud conditions that we alter. A battery operated unit is acceptable in bedrooms if we are not working in those areas. The permit process for this project maintains that these smoke detectors will need to be installed prior to the final inspection. The homeowners are responsible for this upgrade. If you require us to install these battery operated units, we will do so for a fee of $25.00 for each unit installed. Installation location is available at you local government center or follow manufacturer recommendation.

Carbon Monoxide Detection - Since 2008 a Minnesota state law went into effect that required CO2 detectors to be installed into new and remodeled homes into the hallway outside of the bedrooms. The homeowners are responsible for this upgrade. If you require us to install these units, we will do so for a fee of $35.00 for each unit installed (assuming that an outlet is available in an appropriate location for proper installation. Installation location is available at you local government center or follow manufacturer recommendation.

Workmanship - All work is to be completed in a good workmanship like manner (and at a minimum) in accordance with the standard construction practices set forth by the NAHB guidelines to industry standards. A copy is available upon request.

License and Insurance - Proudly licensed by the State of Minnesota as a Building Contractor License # 8747 since inception of the State Licensing program. Our workers and all subcontractors are required to be fully covered by property, general liability and worker's compensation insurance as required by the state of Minnesota DOLI licensing division. Copies of our General insurance coverage and our building contractor license certificate will be issued upon request. The home owner(s) are required to notify their insurance company prior to commencement of the project for the purposes to carry fire and other necessary insurance during all phases of construction process.

Dispute resolution - Any discrepancies or disagreements that may arise during the course of the project will be subject to arbitration. The fees (if applicable) for arbitration will be equally divided by all parties involved. All agreements made from arbitration processes will be legal and binding against further litigation.

Jobsite Guidelines - It will be your contractor's responsibility to clean up and remove all construction debris in a timely manner (unless agreed to by both parties). It is inevitable that any remodeling work will produce some type of inconveniences for your daily lives. We intend to keep these inconveniences to a minimum and to protect your belongings to the best of our ability. With this in mind there falls a certain degree of responsibility by the home owner to allow the contractors ample time and space to complete your project. This might mean you will need to move valuable and delicate items to a safe zone. It will be the homeowner's responsibility to maintain control of all pets and children during the construction period. Thank you in advance for your cooperation. Please feel free to communicate with the lead carpenter or project manager on the project for all of your concerns.

Terms of Cancellation - This proposal may be withdrawn by the Contractor if not accepted within 30 days.