Primary Insured:

If your loan is in an Entity, please have your LLC name and personal name listed as insured. If your loan is in your personal name, please make sure that all at least one Borrower’s name is listed as the primary insured .

Property Address:

The insurance policy must specify the property address, including the house number, street, and zip code . This should match the details on your loan application, appraisal, and title policy.

Policy Details:

Please provide the policy’s inception and expiration dates, annual premium, and contact information for the insurance carrier and agent. Your inception date will be your closing date.

Texas Notes Insurance Requirements:

Should you be completing a Rehab that exceeds just touching up paint and cleaning up trash, Texas Notes requires a 12 Month Builder’s Risk Policy or a 12 Month Vacant Policy with a 3 Month Builder’s Risk Policy to go along with the Vacant Policy.

At Texas Notes, we require a 12-month homeowner’s insurance policy even though the loan term is only 6 months. This precaution ensures there is no lapse in coverage if the property rehabilitation exceeds the loan term, which could otherwise create significant issues for both the Borrower and the Lender in the event of an incident. To avoid such complications, we advise obtaining a 12-month policy. We recommend asking your insurance agents about partially refundable policies that can be transferred from a builder’s risk policy to a vacant or rental policy upon completion of the rehab. This approach offers flexibility and continuous protection throughout the rehabilitation process.

Mortgagee/Loss Payable Clause:

Private Money Investment Loans – Mortgagee Clause below:

Texas Notes, LLC 

ISAOA/ATIMA  

615 Heights Blvd

Houston, TX 77007

LOAN NUMBER HERE – we will provide to your Insurance Agent

Proof of Payment:

Flood Insurance is the only type of insurance that is required to be paid in full before closing.

Please do not pay other insurance policies before closing and kindly send us the invoice for payment to be collected at closing by the Title Company. At times, paying in advance can cause issues and/or delays to change requests such as effective dates, policy vested names, or address adjustments.

Some insurance companies may ask for one month’s insurance payment in advance as a good faith deposit and they will invoice the remaining amount to be paid at closing.  This is okay to do if you chose to.

Coverage Requirements:

The coverage amount must be equal to the lesser of 1) the loan amount or 2) the replacement cost/insurable value of the property.

If utilizing the replacement cost, ensure that you have the Replacement Cost Estimate provided as well.

Flood Insurance:

Click here FEMA Flood Maps to find out if your home is in a Flood Zone as Flood insurance is mandatory for properties located in flood zones.

If the property is in Flood Zone AE, Zone A or Zone V, it is highly likely that Flood Insurance will be required for your transaction!

Deductible:

The homeowner’s policy deductible should not exceed 5% of the dwelling coverage.

By meeting these requirements, you’re not only protecting your home but also streamlining the closing process. If you have any questions or need further clarification, feel free to reach out. We’re here to help every step of the way!

Respectfully,

Your Blink Lending & Investments Loan Fulfillment Team