Integrity Home & Commercial Inspection Services
The Role of the 203K Consultant
I. Site Visit
- Consultant meets with the borrower at the site.
- A walk through and general inspection of the home is provided to determine if the project is feasible.
- If feasible, Client signs Consultant Agreement and pays Consultant a retainer fee
*The fee schedule set by HUD and is paid at the time of the initial inspection
II. Consultant prepares a detailed Report which contains:
- Clear, concise project specifications
- Construction cost analysis
- HUD required draw request forms
- Preparation of contractor bid packages
- Preparation of lender packages
III. Consultant delivers the Report Package
IV. Selection of a Contractor by the Borrower
- The Borrower selects a contractor. Borrowers should be aware that many lenders may have contractor qualification criteria. Some lenders maintain a list of contractors that have met their qualification criteria. Discuss contractor selection with your lender to learn about their contractor requirements. If you’re considering a contractor which has not yet been approved by your lender or has never done a 203(k), it is important that they are informed early on about the 203(k) concept as it applies to contractors.
V. Loan Closes
- Repair funds are placed in escrow.
- Remodeling begins.
VI. Consultant Performs Draw Request Inspections as renovations are completed
*Draw requests are paid by the lender, as part of the loan agreement/draw dispersement.
Renovate a Home that you are planning to purchase or refinance with a HUD 203k Renovation Program. FHA has a loan for renovating and rehabilitating single-family properties. A home buyer can obtain just one mortgage loan which includes the mortgage and the cost of repairs or upgrades dispersed in one loan.