Long Beach Island New Jersey Real Estate | LBI NJ Real Estate | Nathan Colmer

LBI Storm Damaged Home Mortgages

Nathan Colmer | Van Dyk Group

C: 609.290.4293 | O: 609.492.1511

LBI Storm Damaged Home Mortgages

Hurricane Sandy made landfall in the Long Beach Island area at the end of October 2012 and caused major damage to the areas of Long Beach Island and elsewhere. While most of the storm damaged inventory has cleared the market, there are still some opportunities to buy a home on Long Beach Island. There is much to understand about mortgages for storm damaged homes in the Long Beach Island real estate market as these loans differ greatly from traditional financing.



LBI Storm Damaged Home Mortgages | Renovation Loans | LBI NJ Real Estate

LBI Real Estate Buyers




LBI Storm Damaged Home Mortgages | Renovation Loans | LBI NJ Real Estate

If you are considering buying a house in the Beach Haven West real estate market you must have a clear understanding of not only Mortgages for Storm Damaged Homes in the Long Beach Island Real Estate Market but also of the local building codes and of flood insurance on LBI. I can help you understand each aspect of a home purchase on LBI so feel free to call, text or email me with any questions! It is important to understand that there are many options available to a qualified buyer looking for a second home in the LBI real estate market. It is best to speak with several local lenders to understand the shore real estate market and see what options work best. It is equally possible to speak with your accountant or financial planner to see what your best strategy will be. Alternative financing solutions in the LBI real estate market can save you time and money under the proper application. 


LBI Storm Damaged Home Mortgages | Renovation Loans | LBI NJ Real Estate

Mortgages and Financing for Storm Damaged Homes on Long Beach Island

A little known fact is that with conventional financing, banks lend money on the structure: not the land. Therefore, if a property has been damaged by Hurricane Sandy and was gutted, it will no longer qualify for traditional financing. The good news is, there are many loan products and Mortgages for Storm Damaged Homes in the Long Beach Island real estate market available to consumers.

  • 203k Streamline loans on LBI
  • Full 203k Loans
  • Homestyle Renovation Loans

The type of loan a buyer should seek will depend on what the intended use of the property will be. A primary residence will qualify for 203k financing whereas a second home or investment property will be limited to a Homestyle loan.

A 203k Streamline is the simplest form of financing when seeking Mortgages for Storm Damaged Homes in the Long Beach Island Real Estate Market. A 203k Streamline loan will finance 96.5% of the purchase price of the house and also loan up to $35,000 for non-structural improvements. Non-structure improvements means the money can be used for things like electrical work, plumbing, drywall, insulation, floors, kitchen, bathrooms, etc. This is an excellent and helpful form of financing for the purchase of a storm damaged home in the Long Beach Island West real estate market.

If the property was structurally damaged, meaning the foundation needs to be replace, the building needs to be raised or an addition will be put on the house, a full 203k loan is needed. A full 203k involves more work and draw payments similar to a construction loan. A consultant for the bank must evaluate the project and make sure that the finished home will be worth more than the amount the bank is lending. These loans are excellent options for properties that need to be demolished or raised as they offer more money for construction on primary residences.

Homestyle renovation loans are available for primary homes, secondary homes and investment properties in the Long Beach Island real estate market. Homestyle loans will group the purchase price of the land and the estimated cost of renovation and loan 75% of the either project. These loans carry a slightly higher interest rate but can be worth it for a second home as it allows for the purchase and rehab of a storm damaged home or the construction of a new home.




Real Estate Note

Keep in mind that I, Nathan Colmer, am a real estate agent and not a lender. Therefore the information I am providing regarding mortgages is intended to be a general set of guidelines. Your individual situation, including the loan type, interest rate, etc that you qualify for will depend on your individual situation. I am happy to connect you with some lender that I have strong working relationships with to give you more specific and customized information.


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Your LBI Beach House is a Phone Call Away! Call Nathan Colmer 609-290-4293

Nathan Colmer



The Van Dyk Group

12800 Long Beach Blvd

Beach Haven Terrace NJ 08008