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1-2-10 year (HUD/FHA)

If you want to use an FHA loan on new construction or to purchase a house that is less than one year old, then you generally must come up with at least 10 percent of the purchase price as a down payment. A 10-year warranty is not the only option to work around the 90-percent limitation for a home under construction, but if you don’t plan ahead then it may be your only option. If you start working on obtaining an FHA loan after construction has begun, you will probably have to obtain a 10-year warranty from your builder. When you obtain a 10-year warranty, you remove the 90-percent limitation and are allowed to borrow up to 97 percent of the home’s value.

10 year

The need for ten year structural warranties began in the 1970s when Congress suggested that builders escrow 10% of the price of a home to cover structural defects (which statistically occur about as often as major fire damage). As builder margins were not equipped to absorb that 10%, home warranty companies were conceived to bear the risk and protect both builders and buyers from being legally exposed to construction defect issues.

A structural warranty protects homeowners in the event their home develops a structural defect. Should a defect occur and a claim arise, it is in our best interest to address the problem immediately. The list below represents covered components:

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Warranty Management

ProHome is the original builders 3rd Party Warranty Administrator. StrucSure allows builder’s to outsource their warranty department with significant cost savings and liability protection. StrucSure handles PreClosing New Home Orientations, 30 day & 11 month walkthroughs, all subcontractor scheduling and workday coordination, 24/7 emergency service, state statute compliance and extensive documentation.