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(817) 751-9067

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
- Borrower
- Lender
- Contractor 

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.

FHA/203K

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.